XRP Lawsuit: SEC Opposes Motions From Two Firms Seeking To Support Ripple

October 7, 2022 10:11 pm Comments

The SEC has recently objected to motions from two companies that have requested to support Ripple in the ongoing XRP lawsuit.

The two companies are I-Remit which is a global payment remittance firm and Tapjets which is a private jet charter.

Both of these companies utilize Ripple’s technology for their businesses and they have requested to file amicus briefs to help defend Ripple from the SEC’s accusation that XRP is a security.

Amicus briefs are important because it allows third parties to contribute to a lawsuit and therefore influence the court’s decision.

Yahoo reports:

The SEC said the two firms’ proposed briefs are improper attempts to offer evidence outside the constraints of discovery restrictions and the rules of evidence.

In December 2020, the SEC filed a lawsuit against Ripple and its executives, alleging that the sale of XRP — the native token of XRP Ledger that powers Ripple’s payment network — constituted an offering of unregistered securities worth over US$1.38 billion.

I-Remit wrote in its proposed amicus brief that it does not use XRP “to speculate on it” nor does it consider XRP to be an investment, while TapJets wrote that its acceptance of XRP as payment in exchange for its services is vital.

Last month, the court granted cryptocurrency lobby group Chamber of Digital Commerce to be an amicus curiae in the case.

The SEC’s response has been expected by speculators of the case given that this is not the first time that the SEC has rejected such requests that would damage its case.

In response to the SEC’s objections, Ripple responded and said that there was nothing wrong with the two firm’s request given that their perspectives are important for determining on whether or not investors expected profits from investing in XRP.

By objecting such information, the SEC would actually be preventing the court from having valuable insights from both parties.

So far Judge Torres has already ordered the SEC to provide the Hinman documents to Ripple which speculators will ultimately help Ripple win the case.

CryptoSlate.com reports:

Ripple’s XRP is up 3.6% over the last 24 hours, continuing its impressive run in the previous 30 days, according to CryptoSlate data.

During the last seven days, XRP has traded for as high as $0.503 before dropping to its current level of $0.493.

Crypto traders’ interest in XRP turned bullish after its parent company recorded a string of victories against the regulator. This has birthed the belief within the ecosystem that the firm might be able to defeat the SEC.

Meanwhile, Santiment data shows that the daily active addresses on the network have declined from a peak of 215,640 recorded in August to around 25,000 on Oct. 6.

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