The U.S. Securities and Exchange Commission (SEC) is in a long-lasting battle with Ripple, a blockchain company, regarding their case alleging violation of federal securities laws. To support its motion for Summary Judgment, which means the official request for a role or judgement to be made, the SEC has recently filed a new argument in a letter of supplemental authority. This argument refers to the opinion by a Massachusetts court granting the SEC’s motion for summary judgment and denying that of the defendant, a brokerage firm. The court saw the 50-year-old Supreme Court precedent, Howey Test, as a sufficient ‘fair notice’ in the case and thus, claims the SEC, it must support their case too. However, lawyer Bill Morgan wouldn’t agree, claiming there are no significant similarities between the two situations.

Banking law expert Todd Phillips has raised another issue with the application of Howey Test in such cases, as it requires a contract, post-sale legal obligations, and the right to share profits and suggests that using this argument could harm the SEC's cause. With several legal matters at play, XRP token is still holding on to its gains of 35.53% achieved on its monthly chart, which has been recently traded at $0.50 showing a drop in the last 24 hours but a slight increase in the last week.

As the longtime fight between Ripple and the SEC continues, the regulator is determined to prove their case by referring to older Supreme Court precedents, in line with the opinion of the Massachusetts court. It is, however, likely that legal experts from both sides will challenge such arguments, stressing or attempting to deny the similarities of the cases and thus, the reliability of the SEC's point of view. In the meantime, XRP remains in a relatively stable market position and is yet to be determined the winner of this legal battle.



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