Ripple vs. Terra: Which Crypto Will the SEC Come Down On?

Courtroom dramas are always interesting, and it’s seeming like our favourite one has just got more interesting. Ripple has recently taken a bold stance against the Securities and Exchange Commission’s (SEC) plan to challenge a judge’s ruling. The company’s move is causing ripples in the world of crypto law.

Understanding the Three-Pronged Defense

Ripple has responded to the anticipated appeal by the SEC with a well-structured counterargument. Their strategy is built on three key points. First and foremost, Ripple highlights that the judgment issued by Judge Analisa Torres on July 13 doesn’t rest on a single critical legal question.

Digging deeper into their position, Ripple’s leadership asserts that the SEC has failed to adequately justify their differing stance on the matter. Additionally, they express concerns that the appeal might not lead to a swift resolution of the lawsuit.

Read More: Ripple Fires Back at SEC’s Appeal, Calls It “Utter Nonsense”

Ripple’s XRP Sales in Question

On the opposing side, the SEC remains resolute in its efforts. They’ve clearly stated their intention to contest Judge Torres’ ruling related to Ripple’s XRP sales and distributions. The core of their argument revolves around a significant legal question that, according to their perspective, holds substantial potential for debate.

Supporting their perspective, the SEC draws attention to a contrasting judgment in the SEC-Terra case. In this distinct situation, Judge Jed Rakoff, who oversees the Terra litigation, differs from Judge Torres’ viewpoint in the Ripple case.

Ripple Isn’t Backing Down

Central to this legal drama, Ripple has gone the extra mile to distinguish its actions from those of Terra. The company underscores key differences in their approach to XRP sales when compared to Terra’s strategies. Ripple particularly emphasizes the commitments made by Terra’s leader, Do Kwon, which promised returns ranging from 19% to 20% on initial investments in their coin.

Read More: Ripple Continues to Plunge; When Do We Get a New Impulse Move on XRP Price?

Furthermore, Ripple draws attention to Terra’s assertive marketing efforts, urging both individual and institutional investors to acquire their digital assets.