The latest update in Ripple (XRP) lawsuit and policy implications, its counsel STU Alderoty claims to have a strong case against SEC
The U.S. Securities and Exchange Commission (SEC) vs. Ripple (XRP) case opened back in December 2020, when SEC filed a lawsuit against Ripple Labs calling its native tokens (XRP) securities. The SEC claimed that Ripple Labs illicitly received US$ 1.3 billion by selling non-listing securities including its crypto exchange-listed XRP tokens. Finally, the Court of Southern District of New York is all set to deliver the judgment by the end of this month or early October.
This case is not an ordinary lawsuit, but it is going to impact the whole crypto industry in terms of regulations. Let us delve into proceedings to understand the probability of Ripple Labs winning the case:
A United States crypto advocacy group, the Chamber of Digital Commerce (CDC), has been granted approval from the Court of Southern District of New York to participate as an amicus curiae in the U.S. Securities and Exchange Commission (SEC) case against Ripple Labs.
The Court has got a crypto advocacy agency to make an independent assessment in this case. It shows that the court is likely to close the case sooner than later.
The CDC is going to file its assessment by the end of this month which will set a trajectory for this much awaited judgment. This development will impact the whole crypto market and policy for a big time because it will clear all the fog around the “securities” aspect of crypto tokens.
Ripple vs SEC Case Impact: All you need to know
The New York District Court is likely to deliver the judgment in SEC vs. RIPPLE LABS, INC., BRADLEY GARLINGHOUSE, and CHRISTIAN A. LARSEN case
Previously, Ripple called the court arguments “an interim upper hand” in this case after the SEC lawyer argued to distinguish XRP from other crypto like BTC & ETH. The SEC lawyer claimed that ETH and BTC are commodities, whereas XRP tokens are securities.
Earlier Ripple CEO Garlinghouse reportedly stated that only the US regulator is treating their XRP token as a security while the rest of the world considers it as cryptocurrencies like BTC and ETH.
Ripple’s native token has a use case in remittance transactions as well as foreign exchanges. It is developed on a “Hash Tree”, not on a public blockchain network. Hash Tree allows a constant data configuration. Hash tree is also based on cryptographic programming language.
The SEC has finally filed for notice of motion for summary judgment along with Ripple Labs. The New York District Court is likely to take up this case this week. XRP token price has registered a 40% spike in its price in the last two weeks on the back of this development.
While speaking at an interview with CoinDesk Ripple Counsel STU Alderoty provided the latest argument and update in the Ripple case that SEC doesn’t have power to remake the law, only congress can remake the law. This case is only hurting the retail investors that the SEC promises to protect, he further added. He also stated that the SEC is not applying any law and it’s not a faithful allegiance to the law.