Ripple Maintains “Lack of Clarity” Defense In SEC Case
Key Takeaways
Ripple’s legal team has published a new legal filing.
Ripple maintains that certain members of the SEC have expressed a lack of clarity around securities regulations.
Some estimates suggest the case will end in 2022.
Share this article
The legal firm defending Ripple has published a new defense in the company’s ongoing legal dispute with the U.S. SEC.
Background on the Case
The U.S. Securities and Exchange Commission initially claimed that Ripple’s sales of the XRP token constitute an unregistered securities offering. It also claimed that Ripple leaders Brad Garlinghouse and Chris Larsen aided and abetted those sales.
Earlier this month, Ripple’s legal team disputed those accusations by arguing that two individual Commissioners expressed uncertainty around securities regulations in cases against other startups.
The SEC responded to that argument by calling those statements “irrelevant” to its claim that Ripple sold unregistered securities.The regulator maintains that it “is not required to prove that the individual defendants knew or recklessly disregarded the legal consequences of their actions.”
Ripple Doubles Down
Now, Ripple has answered by doubling down on its original argument. In a July 23 letter, Ripple’s legal team argued that there is a “decided lack of clarity” over securities status.
“The SEC has alleged nothing improper about selling XRP other than its claim that those sales required registration with the SEC as a security,” Ripple’s team says in the letter. It also says that the SEC must show that the individual defendants “knew or recklessly disregarded” XRP’s alleged classification as a security.
Ripple’s legal team also argued that other high-profile SEC cases—most notably those against Kik and Telegram—do not support accusations of aiding and abetting, as those cases did not involve accusations against individual defendants.
What’s Next for the Case?
James Filan, a lawyer in the Ripple community, wrote that the case is not yet close to a conclusion. “I don’t think that anyone should expect a settlement anytime soon,” he wrote. “The [SEC] is not giving up and based on everything I’ve read, Ripple will not give in.”
Filan has speculated that Ripple successfully brought forward testimony from former SEC member William Hinman. He also speculated that the company is using information gained from that deposition to interview others involved with the SEC.
Some estimates suggest that the case will conclude in early 2022.
Disclaimer: At the time of writing this author held less than $75 of Bitcoin, Ethereum, and altcoins.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
XRP Poised to Rebound on Ripple Lawsuit Development
After the most recent bloodbath that saw nearly $100 billion wiped from the entire cryptocurrency markets, XRP bulls may have found a fundamental reason to push prices back up. XRP at…
Ripple Wants Former SEC Member to Testify In Case
The legal case between the U.S. Securities and Exchange Commission and Ripple has seen a new development, as Ripple aims to depose a former SEC member and hear their testimony….
Efficient Market Hypothesis: Does Crypto Follow?
The Efficient Market Hypothesis (EMH) is a concept in financial economics which states that security prices reflect all the available information about a financial instrument. EMH is one of the…
SEC Will Sue Ripple Over XRP’s Security Status
The U.S. Securities and Exchange Commission (SEC) is reportedly preparing to sue Ripple over its ongoing sales of the XRP token. CEO Says Ripple Will Fight Back On Twitter, Ripple…
