A critical development has occurred in the case between the US Securities and Exchange Commission (SEC) and Ripple, the issuer of XRP, which has been ongoing since Decembers of 2020 and has not been concluded for close to 2 years. Ripple has submitted its redacted response to the SEC’s appeal against the “summary judgment request”.
“We Have Always Been Honest With the Court”
Stuart Alderoty, Ripple’s general counsel, gave a new news on his personal Twitter account. Alderoty stated that they have submitted their edited response to the SEC’s appeal against Ripple’s request for summary judgment. In particular, the following statements in the submitted response drew attention:
This is our last application, in which we ask the court to rule in our favor. After two long years, Ripple is proud of the defense we have made on behalf of the entire cryptocurrency industry. We have always been honest with the court. The same cannot be said for the SEC.
The Case Between the Dec and Ripple
In December 2020, the SEC sued the San Francisco-based Blockchain company Ripple, accusing it of making unfair profits through the sale of unregistered securities. Along with the Ripple company, executives Chris Larsen and Brad Garlinghouse were also sued.
Ripple’s refusal to accept the charges and settle the lawsuit process has begun. In the $1.3 billion lawsuit, the SEC alleges that Ripple violated securities laws with the XRP pre-sale. The US regulatory agency argues that XRP is a security according to the test known as the Howey Test. The Ripple side, on the other hand, first defended the case on the fact that XRP is no different from other altcoin projects. In addition, he stressed that it is suggestive for the SEC to wait until 2020 to examine an asset that was launched in 2013.
In the case, which lasted throughout the year 2021 amid all these claims and disputes, the hearings were often postponed due to pandemic conditions. Due to the setbacks experienced during the discovery process of the case, it was extended 4 times. All these developments have led to the fact that the date on which the case will be concluded has been constantly pushed forward.
The Hinman Documents, on the other hand, were the most important development in the case. Ripple announced an important victory over the SEC by announcing that the long-requested Hinman documents were delivered to its parties on October 21. The Ripple side wanted to strengthen its defense over the statements of former SEC Corporate Director William Hinman. In the documents, William Hinman, a former SEC officer, said at a conference in 2018 that Ethereum is not a security. According to Ripple, Hinman’s views bind the institution, and like ETH, XRP is not a security. The SEC side argues that Hinman’s statements are his personal opinion.
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