A legal battle is getting more heated – The Security and Exchange Commision (SEC) launched a major lawsuit against Ripple in December 2020. The SEC alleges that the sale of XRP was an unregistered financial securities offering. Last month, the court ruled in favor of Ripple, allowing the deposition of former SEC Division of Corporation Finance Director
William Hinman. Hinman is known for his 2018 speech claiming that Ethereum is not a financial security.
Additional time to share expert findings
In a series of tweets on August 27, James Filan, Ripple’s lawyer, revealed that the court had agreed to extend the initial phase of the trial. The extension comes as a result of a joint motion by the parties who feel they need additional time to prepare.
<img width=”589″ height=”495″ src=”//www.w3.org/2000/svg’%20viewBox=’0%200%20589%20495’%3E%3C/svg%3E” alt=’Twitter post by James Filan related to the extension of the preparation period. Court granting additional time for the SEC and Ripple to produce their experts’ findings.” /><img width=”589″ height=”495″ src=”https://yellowrocketagency.com/wp-content/uploads/2021/09/1_image..png” alt=’Twitter post by James Filan regarding extension of preparation time. Court granting additional time for the SEC and Ripple to produce their experts’ findings.” />JamesFilan Twitter post– Source: Twitter
The Court has yet to rule on the motions pending before it. Further filings can only be made after those rulings have been made. Indeed, the court has yet to rule on Ripple’s motions to terminate the case before the ruling. Ripple claims that the SEC is not presenting sufficient evidence to warrant a judgment in the case.
This is the reason Judge Sarah Netburn granted the joint motion
. However, the time limit was not specified. However,
depositions and testimony can only begin after the motions have been processed and the experts have filed their findings
SEC employees as XRP holders?
In parallel, Ripple has filed a request to determine whether SEC employees have been authorized to
trading XRP. The court immediately granted this request. The SEC has until September 3 to respond to the request.
To do so,
it will have to provide documentation of its employees’ XRP holdings
In its exchanges with Ripple, the SEC shared a document titled “Ethics Guidance Regarding Digital Assets
” This internal memo from January 16, 2018 outlines the rules for trading digital assets for SEC employees. With its request, Ripple wants to prove that the SEC did not consider digital assets as financial securities before 2018.
If Ripple succeeds in this maneuver, then the SEC’s arguments will be drastically weakened. Indeed, the financial watchdog asserts that Ripple and its officials have been engaging in the illegal sale of financial securities since 2013. Now, if the SEC did not consider digital assets as financial securities before 2018, then its argument would lose all its substance.
Finally, Ripple recently provided information on XRP sales on Binance. This data shows that a large majority of XRP sales took place outside of the US. This undermines the SEC’s position against Ripple, which is based on a law that only applies to sales of financial securities taking place in the US. So it seems that Ripple is well on its way to defeat its nemesis: the SEC.
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