News View Non-AMP

XRP Lawsuit: Former SEC Commissioner Criticizes Ripple Lawsuit, Questions ETH’s Treatment

Published by
Nidhi Kolhapur

While the price of XRP currently stands at $0.5578, showing stability and even modest gains of 6.2 %, the cryptocurrency’s legal battle with the U.S. Securities and Exchange Commission (SEC) has unveiled intriguing details. The coin’s upward momentum is backed by positive on-chain metrics. However, there is a chance of a price correction, and if XRP falls to the support level at $0.50, it might experience a significant decline.

The letters Unfold the Long Tail in Short

It has come to light that Joseph Grundfest, a former SEC commissioner who currently serves as a professor at Stanford Law School, vehemently opposed the SEC’s lawsuit against Ripple, citing its far-reaching implications.

In a letter penned in December 2020, Grundfest expressed concerns that the lawsuit could have detrimental consequences for the nation’s financial and securities markets. He cautioned that the case wasn’t just about the technicalities of securities law but would also inflict harm on innocent XRP holders.

His argument was that the fear of legal repercussions would lead intermediaries to cease XRP transactions, which, in turn, would reduce liquidity and cause a decline in XRP’s value, resulting in billions of dollars in losses for third-party holders.

“Upon learning of the proceeding, intermediaries will cease transacting in XRP because of the associated legal risk. The resulting reduction in liquidity will cause XRP’s value to decline.” 

ETH Got the Free Pass? 

But some got the free pass like ETH from the SEC; Grundfest also questioned the SEC’s inconsistency in treating Ethereum (ETH) and XRP. He argued that the SEC hadn’t presented any substantial differences in the operations of Ether and XRP concerning federal securities laws. This led him to challenge the fairness of subjecting XRP to securities law obligations while exempting Ether. Grundfest believed this approach created an unfair competitive imbalance in the enforcement of federal securities laws.

This revelation not only adds an interesting twist to the Ripple-SEC lawsuit but also raises pertinent questions about the regulatory approach to different cryptocurrencies. XRP’s price stability amid the ongoing legal battle underscores its resilience and the continued support it receives from its community.

Nidhi Kolhapur

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

Recent Posts

XRP ETF Incoming: SEC Approves April 30 Launch for ProShares

In a much-awaited development that could shake up the digital asset space, a recent filing…

April 27, 2025

XRP Price Prediction And Analysis For April 27

XRP continues to show strength despite recent market volatility. While Bitcoin experienced sharp moves, XRP’s…

April 27, 2025

Next 23x Token? This DeFi Crypto Could Outperform SOL and AVAX in 2025

In a market where momentum often shifts fast and unpredictably, smart investors are increasingly focused…

April 27, 2025

Where to Earn Passive Crypto Income: Is FXGuys the Best Altcoin Presale Right Now?

Everyday trading isn’t everyone’s cup of tea. Not everyone wants to stare at screens all…

April 27, 2025

Best Crypto to Buy Now With $1 Target? MUTM Has Utility, Revenue, and Room to 40x

As the crypto market regains its footing, investors are already scanning for the next crypto…

April 27, 2025

Missed SHIB and PEPE? This Underdog Crypto Could Outperform Both by Summer 2025

While many have seen tokens like SHIB and PEPE make headlines, a new contender is…

April 27, 2025