The SEC's arguments in its enforcement actions against crypto companies have been criticized by judges as "arbitrary and capricious" and "hypocritical." XRP lawyer John E. Deaton has highlighted the SEC's inconsistency and hypocrisy, which has been noticed by federal judges and both chambers of the U.S. Congress.

The SEC has failed to explain its reasoning behind rejecting Grayscale's Bitcoin ETF conversion and has incorrectly argued for a "question of law" requirement for interlocutory appeal. XRP price has fallen below the key support level of $0.50 but rebounded after Ripple filed opposition to the SEC's interlocutory appeal.