The lawsuit between Ripple and the SEC has been going on for quite a while now. Throughout the court proceedings, SEC has been on the back foot as XRP gave evidence of favoritism in the department for other coins. And now, in the latest filing, Ripple targets a major victory against the SEC as it calls for a judgement. It is expected that the case will be over by December, but things might speed up as well.
Ripple might soon snatch a victory
Ripple has recently asked the court to give a judgment in favor of them because the SEC has failed to make its case. There have already been multiple instances where the SEC was pushed to its back foot. One such instance was when emails showing SEC’s corrupt behavior were leaked. There was also the time when Ethereum was said not to be secure, but XRP was.
The court filings made by Ripple recently also said that the SEC has failed to prove that XRP is a security under the federal securities law. For this, they had to prove that XRP was an investment contract with Ripple. Ripple called for a 75-year-old judgment pointing out what an investment contract means. It has 3 main points.
- It involves a promoter, an investor, and the investor’s right to the investment.
- In the contract, the promoter needs to take specific actions for the benefit of the investor.
- The investor gets the right to profits that the promoter generates by using the investor’s funds.
The SEC was unable to prove all these points which clarify that XRP is not a security. Ripple also said that SEC could not regulate transactions that involve XRP, foreign currencies, and exchanges. The SEC is not going to sit quietly and is expected to file its motion by Oct 18. After this, there will be back and forth between the two parties, and the case will hopefully be over by 2022 end.
What will it mean for the crypto community?
Ripple’s victory will make the SEC realize that they cannot just push around companies and platforms without any valid reason. It will also show that not every POS cryptocurrency falls under securities. The authorities need to give more regulatory clarity on how securities are defined.
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