The SEC and Ripple Labs both want a federal judge to determine either that the crypto firm linked with the XRP cryptocurrency violated federal securities laws or that the complaint be dismissed without requiring a protracted trial. Both the SEC and Ripple filed applications for summary judgement in the Southern District of New York, requesting that District Judge Analisa Torres rule on the arguments presented in accompanying documents. On Friday, the documents were uploaded to a federal court database.
Ripple CEO Brad Garlinghouse stated on Twitter on September 17 that the filings demonstrated that the SEC “isn’t interested in applying the law.”
He further added : “They want to remake it all in an impermissible effort to expand their jurisdiction far beyond the authority granted to them by Congress”.
Today's filings make it clear the SEC isn’t interested in applying the law. They want to remake it all in an impermissible effort to expand their jurisdiction far beyond the authority granted to them by Congress. https://t.co/ooPPle3QjI
— Brad Garlinghouse (@bgarlinghouse) September 17, 2022
The summary judgement petition comes nearly two years after the SEC filed a lawsuit against Ripple, former CEO Christian Larsen, and current CEO Brad Garlinghouse in December 2020 for allegedly raising $1.3 billion through unregistered securities transactions using XRP. Ripple contended that XRP sales and trading did not meet the fundamentals of the Howey Test, a Supreme Court ruling that has been used for decades to decide whether something is a security.
If the summary judgement is upheld, the court’s decision will have a significant impact on establishing which cryptocurrencies are securities under US securities rules.
The SEC stated, among other things, that different remarks by Ripple officials show that Ripple sold XRP, and XRP investors purchased the cryptocurrency with the expectation that their holdings would increase in value over time.
The SEC stated in its complaint that “Ripple publicly highlighted the many actions it was taking and would take to find a ‘use’ for XRP and to maintain the integrity and liquidity of the XRP markets.”
One of Ripple’s objections was that there was no contract between the firm and XRP investors, and that there was no common enterprise, which is one of Howey’s prerequisites.
According to the company’s filing, many XRP holders who purchased tokens through exchanges would not have understood from whom they were acquiring the tokens from.
“Even if the SEC conducted a post-discovery transaction-by-transaction analysis to uncover XRP offers and sales with contracts, its claim would still be barred by law. None of those contracts offered recipients post-sale rights against Ripple or imposed post-sale responsibilities on Ripple to behave in their best interests “according to the complaint.
According to coinmarketcap, XRP price is $0.347699 with a 24-hour trading volume of $2,860,000,970. XRP is down 5.84% in the last 24 hours.
Read more at cryptoshrypto:
To get daily updates & trending news on crypto follow us on: