Ripple vs. SEC Lawsuit Drawing to an End as Lawyers Say SEC Has No Case
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Depending on how Ripple Labs’ dispute with the US Securities and Exchange Commission (SEC) turns out, the value of XRP could rise or fall in the coming weeks and months. One of the largest public holders of XRP, Ripple, a cross-border payment settlement company, submitted a redacted reply in response to the SEC’s request against a summary judgment, marking the latest twist and turn in the legal drama.
#XRPCommunity #SECGov v. #Ripple #XRP BREAKING:
Ripple has filed its Redacted Reply to the SEC’s Opposition to Ripple’s Motion for Summary Judgment.https://t.co/wl99qNTFvL— James K. Filan 🇺🇸🇮🇪 126k (beware of imposters) (@FilanLaw) December 2, 2022
At press time, XRP traded around the 0.3900 mark as traders’ sentiment on the altcoin took a bullish form.
After Ripple Labs responded to the US financial authority SEC’s opposition to a move for summary judgment, the price of XRP stayed essentially unchanged. The SEC’s claim that XRP is a security is invalid, according to Ripple, because the SEC was unable to demonstrate that the sale of XRP was an offer to purchase an investment contract.
Ripple Does Not Pass the Howey Test: Ripple Lawyers
One of the four criteria utilized by the Court in the SEC v. W.J. Howey Co. case to determine whether an investment contract exists is that the purchasers of XRP tokens must have bought a “common enterprise,” according to Ripple’s legal team, which claims that the regulator failed to show this.
The SEC has been unable to demonstrate the four requirements of the Howey Test against the crypto payment company; hence, in the words of Ripple’s legal team, XRP is “not a security” or an investment contract. Lawyers further stated:
“The SEC has now conceded that the digital asset exchanges on which the Individual Defendants conducted the vast majority of their transactions were foreign. That concession extinguishes its claims because federal securities laws do not reach foreign sales and offers.”
Although the American technology company has a compelling defense against the regulator’s accusations, legal experts say it is too soon to predict if the case will be successful.
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