The SEC is trying to force Ripple to register XRP as a security or pay a fine for selling it as an unregistered security.
In an ongoing lawsuit by the Securities and Exchange Commission (SEC) against Ripple Labs, Justice Sarah Netburn of New York’s Southern District Court granted the latter access to documents related to Bitcoin and Ethereum. However, Netburn denied access to employee-to-employee email communications on the same matter. “I will for the most part allow the defendants’ motion,” said Netburn.
In the middle of last month, Ripple filed a motion to compel the SEC to submit documents regarding the SEC’s communications on Bitcoin and Ethereum or its internal communications on XRP.
After access to the internal documents is granted, the lawsuit in favor of Ripple and its management is expected to take a completely new direction. In particular, one of the layers representing Ripple, Mathew Solomon, argued that it could be “game over” for the entire case if they catch the SEC calling XRP a currency rather than a security.
Latest decision on SEC Ripple lawsuit
The news was a huge relief for the entire crypto community, especially the XRP market, which responded positively at the end of the day. According to CoinGecko, the XRP market price has increased more than 5.7% in the last 24 hours and is currently in fourth place by market capitalization. XRP recorded its highest level since the 2017/2018 bull market at around $ 1.10.
“Today was a good day,” Brad Garlinghouse tweeted yesterday. XRP is up roughly 406% over the past 12 months. Also, according to CoinGecko, it rose 110%, 77% and 73% in the last one month, two weeks and seven days.
The SEC accused Ripple of raising funds from the public through the sale of XRP, which it considered unregistered securities. In particular, the SEC accused the company of selling approximately $ 1.3 billion worth of XRP. As a result, the regulator is trying to force Ripple to register XRP as a security or pay a fine for selling it as an unregistered security.
“Issuers wishing to take advantage of a public offering, including access to retail investors, broad distribution and a secondary trading market, must comply with federal securities laws that require the registration of offers unless an exemption from registration applies,” said Stephanie Avakian, director of the SEC’s Enforcement Division. “We claim that Ripple, Larsen and Garlinghouse have failed to register their ongoing offering and sales of billions in XRP to retail investors, which gives prospective buyers adequate information about the business of XRP and Ripple and other important long-term protections that are fundamental to our company Significant are withheld has a robust public market system. “
However, Ripple and his shift team argue that the SEC saw the XRP market grow without concern for nearly a decade.
A financial analyst who sees positive returns in either direction of the market (bulls & bears). Bitcoin is my crypto-safe haven, free from government conspiracies. Mythology is my secret! “You can’t enslave a mind that knows itself. That treasures itself. That goes without saying.”
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