The ongoing legal battle between the Securities and Exchange Commission (SEC) and Ripple continues to draw attention from cryptocurrency enthusiasts around the world. In the latest development, the federal regulator has responded to Ripple's letter of supplemental authority, sparking criticism from industry experts.
Ripple had filed a letter of supplemental authority on March 20th in support of its fair notice defense. The company cited the Voyager bankruptcy case, in which Judge Wiles had ruled that tokens sold under an initial coin offering (ICO) were not securities. Ripple argued that this ruling provided further evidence that XRP should not be classified as a security.
However, in response to Ripple's letter, the SEC has drawn criticism for what some experts are calling a "thin" argument. The regulator maintains that XRP is indeed a security and argues that Judge Wiles' ruling is irrelevant because it pertains to a different case with different facts.
Industry insiders have expressed disappointment with the SEC's response, noting that it fails to address key issues raised by Ripple's supplemental authority letter. Some have also criticized the regulator for its lack of clarity regarding how it determines whether or not a digital asset qualifies as a security.
This latest development comes amid growing frustration among members of the cryptocurrency community over what many see as an overly aggressive approach by regulators towards digital assets. Many argue that current laws surrounding securities were not designed with cryptocurrencies in mind and need updating.
As both sides continue their legal battle, all eyes will be on future developments in this closely watched case.