Written by Christopher Liew, CFA of The MotleyFoolCanda.
did Ripple (CRYPTO: XRP) Are you really violating US securities law because you sold native tokens, XRP, and unregistered securities? Cryptocurrency investors and the rest of the crypto space are awaiting the final ruling of the US SEC proceedings vs. Ripple filed on December 21, 2020.
Regulators claim that Ripple provides illegal security and that XRP is security, not cryptocurrency. It facilitates cross-border payments, but crypto investors earn commissions. The SEC claims that defendant Ripple Labs Inc. and its two senior executives have raised more than US $ 1.3 billion through the ongoing provision of unregistered digital asset securities.
Ripple argues that XRP is not a speculative investment tool, but a useful tool for transferring value across borders through Ripple products. The excitement grows as the case prolongs, as court decisions can have a significant impact on cryptocurrency regulations. Meanwhile, the proceedings prevented XRP from flying.
Important date
The parties in dispute cannot yet claim a firm advantage, as the court has dismissed their respective motions. It denies the SEC’s move to refuse defendant’s defense of fair notice, and Ripple’s allegation that there is no fair notice of illegal coin distribution in the highly volatile crypto market. did.
The Southern District Court of New York, through Justice of the Peace Sara Netburn, ordered the SEC and Ripple to reach an agreement on a briefing schedule for summary judgment. “The parties have been instructed to meet and discuss summary judgment petition briefing schedules,” Netburn said.
“The parties shall submit a jointly proposed schedule for court approval within one week of the submission of the SEC,” the Justice of the Peace added. Individual defendants are required to file a motion or response on April 8, 2022. Meanwhile, the SEC is required to submit a position on additional discoveries by April 15, 2022. The submission date for the joint proposal schedule is April 22nd. 2022.
Defense of fair notification
Some legal experts believe that summary judgment is likely to focus on the defense of fair notice, the fourth affirmative defense. The court’s dismissal of the SEC’s motion to revoke its defense seems to favor Ripple and her co-defendant. In her previous court order, Judge Analisa Torres pointed out what important factors are important in future summary judgment on the defense of impartiality.
According to Ripple, XRP was not sold as an investment and the company had nothing to do with XRP holders. Defendants’ allegations of fair notice can spell the difference between cases and lead to victory. If the defendants get lost, they hope to start the briefing schedule by mid-May. But the SEC said it was premature. Therefore, we jointly proposed a scheduling order for this month.
Delay tactics?
John Deaton, a lawyer for 65,000 XRP holders, asks, “Why is the SEC making such efforts and dragging this issue so long?” At the time of this writing, XRP has been struggling to reach $ 1, but to date it has risen 4.6% ($ 0.869205). The last time the cipher crossed the threshold was November 25, 2021.
The SEC proceedings are blocking the rise in XRP.Still, the market capitalization of cryptocurrencies is US $ 41.74 billion, slightly higher than that. Solana When Cardano..
Ripple on the SEC: XRP isn’t a speculative investment, but it first appeared in The MotleyFoolCanda.
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Stupid contributor Christopher Liu does not have a position in any of the shares mentioned. Motley Fool owns and recommends Solana.
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