Ripple Lawyers Seek SEC Lawsuit Dismissal – Could XRP Moon Again?
Last Updated on 6 March 2021 by CryptoTips.eu
Looks like Ripple is going to take a page out of Tether’s playbook in its lawsuit against the SEC. Allow us to recall: Tether simply bullied the New York state attorney into backing off by burying the latter in 2 million documents. The New York state attorney then settled with Tether and slapped them with an 18.5 million fine, which is less than what they make in a week as a company.
Ripple Labs has hired a boatload of law firms and where we expected about a month ago still that Ripple Labs and the SEC could settle the suit, it now looks like the crypto firm’s lawyers want a complete dismissal altogether.
This is why regulation by enforcement wreaks such havoc. By bringing a massive enforcement case, the SEC acknowledges they didn’t “determine” anything, but the crypto markets - under pressure - interpreted the filing as such, causing massive damage to retail holders. 1/2 https://t.co/mDDFTvHe5e
— Brad Garlinghouse (@bgarlinghouse) March 6, 2021
The firm of Cleary Gottlieb argue that:
Mr. Garlinghouse’s XRP sales involved no contract of any kind with the buyers, as his sales were done anonymously over an exchange. Nor were the proceeds of Mr. Garlinghouse’s sales pooled with other buyers in a common enterprise.
Ripple CEO Gives Two Reasons to Dismiss SEC Lawsuit
— Kevin Cage (@Kevin_Cage_) March 5, 2021
"Ripple CEO Brad Garlinghouse has provided two key arguments for the SEC to dismiss its complaint against his company."#Ripple $XRP #XRPCommunity https://t.co/gzYox8m4Rc
And XRP’s value historically has not been correlated with Ripple’s actions, results, or public announcements, but instead with changes in the value of other digital assets, such as bitcoin and ether, that the SEC has publicly declared are not securities.”
Ripple and its top executives are being sued by the SEC which alleged that they illegally sold a security (XRP) and made profits of over $1 billion.
Brad Garlinghouse has however maintained his position that XRP is not a security. In his defense, both in 2015 and 2020 the Department of Justice and the Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”) declared XRP to be a virtual currency.
XRP bull run?
The rest of the cryptosphere needs to keep and eye on the possible outcome of Ripple’s case as it could indicate how regulators will look at the cryptocurrency industry in the future.
"Chris and I had the option to settle separately. We could do that, and it would all be behind us. That’s how confident Chris and I are that we are right. We will aggressively fight – and prove our case..."
— XRP_Cro (@stedas) February 27, 2021
- Brad Garlinghouse, CEO @Ripple
👉https://t.co/0lcYGbyAIV pic.twitter.com/TFzAKrnObR
One of the most interesting things to look at however is the price of XRP, which has remained stuck in the same trend ever since the SEC launched it’s lawsuit against Ripple Labs. Should Garlinghouse’s bullying technique prove successful and the SEC willing to either dismiss or settle the lawsuit, many analysts expect XRP to boom as it has missed the 2021 crypto bull run so far.
Furthermore, speaking to Reuters on Friday, Ripple Labs CEO Garlinghouse confirmed that the coin still holds large masses of fans in Asia, and that the company plans to continue growing in that continent. Garlinghouse said:
It (the lawsuit) has hindered activity in the United States, but it has not really impacted what’s going on for us in Asia Pacific.
- Discover where to buy XRP.