Ripple’s arguments in motion filing have made the SEC nervous. Here’s what you should know about it. SEC’s losing the game?
Ripple made very strong arguments in their motion filing to get the case against them dismissed. Now, the SEC has submitted its response to Ripple’s motion filing. What we are seeing now can be termed as “Discovery Battle.”
On one hand, Ripple is trying to uncover as much information as possible to turn the case in their favor. On the other hand, the SEC will try to prevent Ripple from accessing sensitive information about the SEC’s conduct, concerning XRP, Ripple’s cryptocurrency.
The Discovery Process has Begun- A Wasteful Foray by Ripple?
SEC in response to Ripple’s motion filing has called Ripple’s defense arguments as wasteful forays in the SEC vs Ripple lawsuit. Experts like Jeremy Hogan, a practicing attorney, have pointed that the SEC is nervous about what Ripple may find in the discovery process and this is obvious from their response to the motion filing.
“SEC is nervous about what Ripple may find”
The reason behind this is Ripple’s demand for SEC transcripts from their communication with various exchanges about XRP. This is an important part of the lawsuit as if the SEC wins the motion, all the discussion about the SEC’s communication with the exchanges, FINCEN’s comment on XRP will become null and void.
SEC’s Strongest Argument
In their response to the motion filing, the SEC has mentioned that they had sent two legal memos to Chris Larsen in 2012. In memos, they had clearly told Larsen that under certain circumstances, XRP’s sales would constitute security. Thus, the SEC advised him to get in touch with them for further clarification on this matter. But Larsen did not get back to the SEC and continued selling XRP tokens.
SEC’s Response to Jurisdictional Argument Made by Ripple
Ripple made an argument in their motion filing that the SEC doesn’t have any proof about XRP sales in the United States. And the SEC doesn’t have jurisdiction over XRP sales in countries other than the United States.
Responding to Ripple’s argument, the SEC has called every single sale of XRP tokens a discreet sale.
From what has already transpired in the SEC vs Ripple case so far, it is obvious that the SEC has no case against the XRP sales in 2020 and 2021.
The SEC’s only saving grace is the trade contract that Ripple made in the past and this is likely to go in the favor of the SEC. Now, even in this case, the only people that will be facing the charges are two of Ripple’s founders. It won’t have much effect on XRP as such because, in current circumstances, the SEC doesn’t have any proof that XRP sales in 2020 and 2021 constitute a security.
It would be interesting to see what would be the court’s reaction on Ripple’s motion filing and SEC’s response to it. The Hashant team will keep an eye on the developments and will keep sharing the SEC vs Ripple update with our community.
Do you think that the SEC’s case against Ripple is weakening now? Let us know below in the comments.