The post Ripple vs. SEC Lawsuit: The Latest in the Ongoing Legal Saga – September 2023 Update appeared first on Coinpedia Fintech News
When discussing XRP vs. SEC, the never-ending legal drama is the first thing one thinks of. There’s always some new exciting twist, development, or buzz to learn about. So, what’s the latest update? Dive in!
Ripple Pushes Back Against SEC’s Appeal
On September 1, prominent crypto exchange Ripple filed its objection to the SEC’s request for an interlocutory appeal. In their objection, Ripple defendants Brad Garlinghouse and Chris Larsen argue that the appeal is baseless, as it would require the Second Circuit to review the court’s application of law to the evidence before a final judgment has been entered.
The team later notes:
“Because the questions the SEC presents for interlocutory appeal would require the Second Circuit to review this Court’s application of the law to the evidence adduced in summary (the parties’) judgment motion(s), an interlocutory appeal (is) inappropriate.”
The SEC must request the Court to review the decision without examining the record to fulfill the conditions for an interlocutory appeal. The Ripple defense team continued to plead that an interlocutory appeal was undesirable because the Second Circuit would need to review the record.
Also Read : XRP Lawsuit Update: SEC’s Handling of Ripple Case Under Scrutiny Amidst Allegations of Conflicts of Interest
John Deaton’s Insights: What are the Next Steps?
John Deaton, a pro-XRP lawyer representing XRP tokenholders, has outlined the steps Ripple and the SEC might take to settle. He is against the SEC’s actions and has voiced his dissent several times.
Deaton believes that if the judge in the Coinbase vs. SEC lawsuit grants Coinbase’s motion to dismiss, it could set the stage for a possible Ripple-SEC settlement before the end of the year.
He asserted:
“The only way Ripple and the SEC (could) settle before the end of the year is if Judge Failla grants the Coinbase motion to dismiss or partially grants it – finding token sales on an exchange in a blind bid/ask transaction do not fall under U.S. securities laws”
The SEC filed a lawsuit against Ripple, its CEO Brad Garlinghouse, and its co-founder Chris Larsen in December 2020, alleging that the company sold XRP as an unregistered security. The lawsuit has significantly impacted the crypto industry, as many exchanges have delisted XRP or restricted its trading.
Ripple Puts Diversity First!
Despite the ongoing legal challenges it faces in the United States, Ripple is committed to expanding its global reach and hiring the best talent worldwide. In an interview with Bloomberg, CEO Brad Garlinghouse announced that the company plans to hire 80% of its new staff from outside the United States this year.
This move signals that Ripple is serious about diversity and inclusion in the workplace.
Also Read: Ripple vs. SEC Lawsuit Update: Possible Settlement Is Guaranteed? Expert Weighs In
Ripple to Look Beyond the USA
After suffering losses from the SEC lawsuit, Ripple wants to expand to countries with more explicit crypto regulations to avoid further disruptions to the XRP industry. The company plans to hire 80% of its new staff from outside the United States this year, focusing on countries like Singapore, Hong Kong, and Dubai.
He stated:
“You see markets like we have here in Singapore, certainly even what we’re seeing in Hong Kong, the U.K.Dubai, where the governments are partnering with the industry, and you’re seeing leadership, providing clear rules and you’re seeing growth, ” Garlinghouse said. “And frankly, that’s why Ripple is hiring there, 80% of our hiring this year will be outside the United States.”
CEO Brad Garlinghouse cited these countries as examples of markets where “governments are partnering with the industry and providing clear rules.” He also criticized the SEC for creating an unfavorable crypto environment in the United States by suing major exchanges like Binance, Coinbase, and Kraken.
Garlinghouse’s comments suggest that Ripple is frustrated with the lack of regulatory clarity in the United States.
Ripple Refuses to Back Down
In a recent ruling, Judge Analisa Torres decided that most of Ripple’s XRP deals did not break securities laws. She found that sales defined as “other distributions” were acceptable and did not include an offer of unregistered securities. These included offers and trades of XRP in return for goods and services.
This ruling is seen as a victory for Ripple, as it supports the company’s argument that XRP is a virtual currency and not a security.
The SEC has requested a contemporary court ruling, allowing the case to be appealed before it reaches a final verdict. However, Ripple President Monica Long has said that the company will continue to fight the case all the way through.
“We are planning to continue to fight the case through” – Said Long.
Ripple’s Expansion Plans – 2 New Regions Unlocked!
Ripple has announced that it has opened liquidity hubs in Brazil and Australia. This is a significant expansion for Ripple’s global network, and it will give businesses in these regions easier access to digital assets.
The liquidity hubs will provide businesses a streamlined way to buy, sell, and hold digital assets. The expansion into Brazil and Australia is part of Ripple’s plan to add support for other tokens and meet its customers’ demand. Ripple has also announced new trading UI features and improved service level agreements for crypto deposit processing.
This shows that Ripple is committed to expanding its global reach and making digital assets more accessible to businesses worldwide.
Also Read : Ripple CEO’s Positive Outlook on SEC Appeal: Key Insights Revealed
An Expensive Battle: Ripple vs. SEC
Ripple has spent a massive $200 million on lawyers in its legal battle with the SEC. This eye-opening statistic reflects the disturbing reality of the high cost of litigation, as well as the life-and-death struggle between the crypto industry and the SEC, whose chairman, Gary Gensler, has adopted unclear regulations that threaten crypto firms.
The legal battle has dragged on for nearly three years, with many ups and downs.
However, the most crucial turn came in July of this year, when Ripple won a partial victory against the SEC, resulting in a significant price increase for the XRP token, which totaled approximately $0.84.
Ripple Welcomes Rahul Mukhi!
Defense lawyer and former federal prosecutor James K. Filan took to Twitter (X) to announce their new addition, Rahul Mukhi, who will represent Brad Garlinghouse in their legal battle with the SEC.
Rahul Mukhi served as an Assistant US Attorney in the Southern District of New York from 2010 to 2016. He was also honored by the Department of Justice for his outstanding service, one of the highest honors in the US Department of Justice.
Gary Gensler’s Tight-Lipped Approach Irks the Industry
SEC Chairman Gary Gensler faced a barrage of criticism from members of Congress this week over his stance on crypto and his unclear regulations over exchanges. Gensler raised the issue again by saying that people operating unauthorized accounts and migrating customer funds are “hucksters.”
In response, Rep. Stephen also questioned Gensler about the Commission’s legal fight against Ripple. Gensler was reluctant to provide specific details on the matter.
Wrapping Up
All in all, The SEC has argued that XRP is a security because it was sold to investors with the expectation of profits from the efforts of Ripple. However, Ripple has argued that XRP is a commodity and was not sold as an investment. This fight has been ongoing for over three years – and the situation is still murky. However, Ripple’s “Proper Party” in NYC suggests that the company is confident in its position and optimistic about the case’s outcome.
Also Read : Ripple Proper Party: Here’s What Happened At The Victory Party
The outcome of the case will significantly impact the crypto industry. If Ripple wins, it could set a precedent for other cryptocurrencies and make it more difficult for the SEC to regulate them as securities. If the SEC wins, crypto companies could be more difficult to operate in the United States.
Over to you – what do you anticipate the outcome to be?