- The cryptocurrency world is curious about the outcome of the SEC’s lawsuit against Ripple. However, since the case has just started, it is not possible to draw a result from the first session.
The cryptocurrency world is curious about the outcome of the SEC’s lawsuit against Ripple. However, since the case has just started, it is not possible to draw a result from the first session.
SEC has fixed their complaints, but Ripple says it has the upper hand
The ongoing securities litigation on XRP continues to evolve as new statements from the SEC and Ripple move the case forward.
Last December, the US Securities and Exchange Commission (SEC) filed a criminal complaint against Ripple, claiming that the sale of the XRP token constituted an unregistered securities offer.
The SEC filed an amended complaint against Ripple on February 18th. This complaint contains several new details and claims.
Ripple attorney Jeremy Hogan outlined some of these changes. He stated that the SEC must not only prove that XRP is a security, but that XRP executives know it is wrong to sell the asset and continue with sales no matter what.
That’s why the SEC added paragraph 110, claiming that Ripple executives Chris Larsen and Brad Garlinghouse “played an important role in negotiating and approving corporate sales and in other offers and sales of XRP to institutional investors.”
Hogan also drew attention to paragraph 186, which says XRP sales occur both inside and outside the United States. He argues that Ripple will claim that the SEC does not have jurisdiction based on these particular charges.
On February 21, Ripple’s legal counsel, Stuart Alderoty, responded to the new allegations, arguing that little has changed legally.
Elsewhere, former SEC Chairman and Ripple attorney Mary Jo White defended Ripple in the media and stated that the SEC was “in a legal and completely false move”. He argued that the case would likely fail due to the SEC’s failure to assert it for years.
White also suggested that the case could be resolved by a summary decision as early as October, or earlier if the two parties reach an agreement earlier.
Biggest development regarding the case
Ripple states that in the first phase of the trial that took place yesterday, Ripple stated that the SEC did not make any statements regarding the exchanges that listed XRP in 2019 and before.
On the other hand, he states that the exchanges asked the SEC whether the XRP is a security, but the SEC did not give any answer.
For this reason, it is stated that exchanges make their own evaluations and do not see XRP as a security.