Ripple Files A Final Submission Against The SEC• December 7, 2022 9:15 pm • Comments
The lawsuit between Ripple and the SEC seems to be close to a finish as the case approaches the two year milestone and the entire crypto industry is waiting for the court’s decision.
Ripple just filed its final submission on December 2 where it continued to argue that the SEC had failed to prove that the XRP is considered a security as part of the initial offering.
The company is now just waiting on the court to hopefully approve its motion and deny the SEC’s motion and made a public statement that this would be its final submission.
Investors are keeping a close eye on the result because it is expected that the ruling on Ripple will ultimately determine how the majority of crypto is classified as an asset.
As a result, the result of the case decides that fate of not only Ripple, but how regulation will look like for many years to come.
Follow the bouncing regulator.
“Howey provides a clearly expressed test for determining what constitutes an investment contract.” SEC 4/22/21
“Hinman’s speech provided thirteen expressly non-exhaustive factors that market participants could consider.” 12/2/22
— Stuart Alderoty (@s_alderoty) December 4, 2022
Stuart Alderoty, general counsel of Ripple, stated on Twitter on Dec. 3 that this is Ripple’s “final submission,” asking the court to “grant” judgment in its favor.
He also stated that Ripple is proud of the defense it has mounted on “behalf of the entire crypto industry,” noting that Ripple has “always played it straight with the court,” taking a subtle swing at the SEC saying he “can’t say the same for our adversary.”
In another Twitter post, Alderoty continued to slam the SEC on Dec. 5 and referred to it as a “bouncing regulator,” quoting two statements that he suggests are at ends with each other.
The ongoing legal dispute between SEC and Ripple began in December 2020 when the SEC initiated legal action against Ripple, claiming it had raised $1.3 billion by offering Ripple’s native cryptocurrency XRP as unregistered securities.
James Filan also publicly made statements on his Twitter that indicated that the case would soon wrap up and come close to an end.
For example, he mentioned that there were only three issues left to be resolved in the lawsuit.
These three issues that he mentioned includes summary judgement motions, expert challenges, and sealing issues regarding important documents like the Hinman reports.
These three things will be what the judge will use to ultimately make the final decision and it looks like Ripple has an overwhelming advantage on all three of these.
This is our final submission where we ask the court to grant judgment in our favor. After two long years, Ripple is proud of the defense we’ve mounted on behalf of the entire crypto industry. We have always played it straight with the Court. Can’t say the same for our adversary.
— Stuart Alderoty (@s_alderoty) December 2, 2022
Ripple leverages the Hinman document to argue that XRP doesn’t fall under the oversight jurisdiction of the SEC. The final ruling of the legal battle will prove decisive in determining the role of the United States Securities and Exchange Commission in cryptocurrency.
Currently, there is a regulatory tussle between the SEC and the Commodities Future Trading Commission (CFTC).
However, the Lummis and Gillibrand Bill intends to clearly define the role of the SEC and CFTC in the industry. Yet the cryptocurrency sector will be banking on the outcome of the Ripple vs. SEC tussle to determine the industry’s fate in the United States.
With the final ruling set to come by 2023, it will set judicial precedence for the role of the SEC in the industry.
— JamesRuleXRP💫#DOTHEDEAL💫Astrolight🚀👊😎 134K (@RuleXRP) December 3, 2022
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