XRP Prices Rally Over 15% As Markets Respond To Amici Brief Approvals Involving SEC Case

XRP has climbed lately, rising notably as investors responded to news that a federal judge has allowed more than 10 separate parties to submit amici briefs in the high-profile lawsuit involving the U.S. Securities and Exchange Commission.

The digital token, which is the native asset of the Ripple platform, reached as much as $0.3973 earlier today, CoinDesk data shows.

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At this point, the cryptocurrency had increased 16% over roughly 24 hours, additional CoinDesk figures reveal.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

The digital currency has experienced some upside recently as global investors processed the latest developments in the case the SEC brought against Ripple Labs, Inc. and two of its key executives, a saga that has been going on for close to two years.

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Federal Judge Approves Amici Briefs

Yesterday around 5:45 p.m. EST, James Filan, a former federal prosecutor who is representing Ripple Labs, tweeted a court document revealing that U.S. District Judge Analisa Torres had granted several parties, including industry group the Blockchain Association and major cryptocurrency exchange operator Coinbase, Inc., the ability to file amici briefs, also known as “friend of the court” briefs.

Torres gave these parties, which included both organizations and individuals, until November 18 to submit their written arguments.

Coinbase Brief

Later that night, Filan tweeted another court document indicating that Coinbase had filed its amicus brief with the court.

The exchange operator, which sought permission to file this documentation late last month, asked at the time whether the SEC had provided defendants in the case with “fair notice,” or adequate warning, before taking legal action against them, according to CoinDesk.

The brief that Coinbase submitted yesterday focused on this particular matter, as well as other considerations.

“Existing precedents furnish substantial support for Ripple’s invocation of the fair notice defense,” the document stated.

“One of the fundamental principles of due process ‘in our legal system is that laws which regulate persons or entities must give fair notice of conduct that is forbidden or required,’” it noted.

The brief further questioned the rationale behind the SEC’s claim that Ripple’s issuance of XRP tokens amounted to a sale of unregistered securities.

“As Ripple has argued, the mere fact that so many market participants believed that XRP sales were allowed raises substantial, disputed questions of fact about whether a person of ordinary intelligence would have understood the SEC’s guidance to allow the very XRP sales that it is now seeking to punish.”

Call For Regulatory Clarity

Further, the Coinbase brief implored the government agency to provide the crypto space with more transparent regulations, stating that the government watchdog’s current approach is not sufficient.

The document spoke to the implications of this situation, claiming that “The United States does not currently have a functioning market in digital asset securities due to the lack of a clear and workable regulatory regime.”

“Coinbase and many other U.S. trading platforms have tried in good faith to steer clear of listing digital assets that the SEC may deem to be securities to ensure that they operate in full compliance with existing laws,” the brief stated.

“But new rules facilitating the use of digital asset securities would allow for a more efficient and effective allocation of capital in American financial markets and create new opportunities for American entrepreneurs and investors.”

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and sol.