XRP Lawsuit: Ripple Case Heads Closer To Conclusion As ‘Summary Judgement’ Is Filed• September 20, 2022 10:00 pm • Comments
Right now in the lawsuit between Ripple and the SEC, both parties have now called for the judge to make an immediate ruling to determine whether or not XRP is considered a security.
The motions were filed by each party and were both submitted for judgement in the U.S. District Court Southern District of New York.
This is great news because summary judgements are usually only made when a party thinks that there is already enough proof to make a ruling.
The fact that both parties were willing to call for a summary judgement indicates to speculators that the lawsuit may possibly soon be reaching a conclusion.
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
Both parties have called on Judge Analisa Torres to make an immediate ruling as to whether Ripple’s XRP sales violated U.S. securities laws.
Ripple has argued that the SEC has run out of answers to prove XRP sales constituted an “investment contract,” while the SEC has held strong on its beliefs that it does.
Ripple CEO Brad Garlinghouse, in a Twitter post on Saturday, said the filings made it clear that 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,” he said.
Meanwhile, Ripple general counsel Stuart Alderoty noted that “after two years of litigation,” the SEC is “unable to identify any contract for investment” and “cannot satisfy a single prong of the Supreme Court Howey test.”
Ripple’s summary judgement essentially states that there were no contractual obligations between the company and the owners of XRP tokens.
Because of this, the SEC has no reason to makes its claim that XRP is a security and that the SEC’s claim is basically like an open-ended assertion of jurisdiction without any real evidence.
As for what the SEC’s motion for summary judgement contains, the SEC is arguing that it is still possible to have an “investment contract” without actually having a contract which is why it thinks the XRP is a security.
Of course, Ripple responded to that motion because the Howey test cannot be applied to such a principle which means it holds no legal ground.
— Paul Macrae (@PaulMac_1975) September 18, 2022
Ripple instead pointed to profits coming from “market forces of supply and demand,” something that the SEC “conceded,” according to the Ripple motion.
The significance of this admission was highlighted by U.S. Attorney Jeremy Hogan in a Saturday post on Twitter, stating that “these concessions are perfect for a summary judgment.”
The filing of the Ripple and SEC motions brought about mostly positive sentiment from the XRP community, with one Twitter user believing “the end is near:”
The motion for summary judgment comes nearly two years after the SEC sued Ripple, former CEO Christian Larsen and current CEO Brad Garlinghouse in Dec. 2020 for allegedly raising $1.3 billion through unregistered securities sales through XRP.
If the court executes the summary judgment, the court ruling will have a profound impact on determining which cryptocurrencies constitute a security under U.S. securities laws.
Ripple, SEC Seek Summary Judgement to End Case Soon and Why That’s Likely Bullish for XRPhttps://t.co/Txchby0ooj
— Michael Branch (@Michael63140627) September 19, 2022
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