In this article, you will get all information regarding Ripple SEC Lawsuit Update: Mutual Call For Immediate Ruling
Ripple Labs and the Securities Exchange Commission asked for an immediate ruling on Ripple’s alleged securities law violation. Both parties filed motions in the Southern District of New York for a summary judgment based on provided documents. The ongoing legal battle began in December 2020 when the SEC sued Ripple Labs CEO Brad Garlinghouse and Chairmen Chris Larsen for offering XRP as an unregistered security. Here’s everything you need to know about the Ripple SEC lawsuit update.
The suit has been in discovery for nearly two years
The SEC sued Ripple Labs in 2020, alleging they raised over $1.3 billion by offering XRP as an unregistered security. However, Garlinghouse and Larsen say that XRP does not pass the Howey test. The Howey test results from a Supreme Court case that determines if an asset is a security.
Over the last two years, both the SEC and Ripple Labs filed multiple discovery motions. Discovery motions are court-ordered shared information to provide critical documents related to the lawsuit. Though the suit has been in discovery since the filing nearly two years ago, the courts have made no progress on an actual decision. Now, both parties feel there is enough evidence for a judge to pass a verdict with no trial needed.
The Ripple SEC lawsuit has vital implications for crypto regulation
The Securities Exchange Commission and Commodity Futures Trading Commission seek to regulate cryptocurrency. SEC Chairman Gary Gensler has said on record multiple times that he considers Bitcoin the only cryptocurrency commodity. According to him, the rest of the digital asset realm should fall under SEC jurisdiction.
The Ripple vs. SEC lawsuit will play a vital role in determining which federal regulatory agency has jurisdiction over cryptocurrency. However, there is still some time before a judge can decide. The SEC and Ripple Labs will file a final round of briefs to argue their case in the coming months. According to The Wall Street Journal, Ripple Labs’ general Council, Stu Alderoty, says a ruling likely won’t come until 2023.
Ripple SEC Lawsuit Update: Mutual Call For Immediate Ruling
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