The recently filed summary judgment motions stir reactions from Ripple experts.
In a surprising development, Ripple and the Securities and Exchange Commission publicly filed the summary judgment motions over the weekend in contrast to the expected September 19, 2022.
#XRPCommunity #SECGov v. #Ripple #XRP BREAKING: Ripple Labs, Brad Garlinghouse and Chris Larsen file Motion for Summary Judgment seeking judgment as a matter of law.https://t.co/1BG1MgQu7p
— James K. Filan ???? 113k (beware of imposters) (@FilanLaw) September 17, 2022
#XRPCommunity #SECGov v. #RIpple #XRP BREAKING: SEC files Motion for Summary Judgment.https://t.co/uPBRctmiQJ
— James K. Filan ???? 113k (beware of imposters) (@FilanLaw) September 17, 2022
The parties filed their motion separately in the Southern District of New York. Following the development, the parties call on the Judge in charge of the lawsuit, Magistrate Analisa Torres, to rule on the more than one-year case to determine whether XRP sales violated United States security laws or not.
Bone of Contention
The SEC has built its argument on the premise that purchasing XRP in a common enterprise makes the cryptocurrency an investment vehicle, thus security, which U.S. securities laws must govern.
Additionally, the SEC asserted that Ripple lured many investors to purchase XRP by making them believe that they would make enormous gains in the future, thus implying that the cryptocurrency is a security.
On the contrary, the defendants – Ripple, Chris Larsen, and Brad Garlinghouse – said the regulators could not prove that investors purchased XRP while relying on the company to help them make a profit since no agreement was reached.
According to the Silicon Valley tech company, token holders usually profit from the asset through the forces of demand and supply.
Based on this, XRP holders do not have the right to demand profit from Ripple. Furthermore, they cannot accuse the company of any breach when they do not make profits from the XRP, Ripple added.
Ripple Executives and Enthusiasts Blast SEC
Meanwhile, Ripple executives and several enthusiasts took their time to comment on the SEC’s recently filed summary judgment motion.
According to Garlinghouse, the CEO of Ripple, it is evident that the SEC is not interested in applying the law in the case, adding: “They want to remake it all in an impermissible effort to expand their jurisdiction far beyond the authority granted to them by Congress.”
Today's filings make it clear the SEC isn’t interested in applying the law. They want to remake it all in an impermissible effort to expand their jurisdiction far beyond the authority granted to them by Congress. https://t.co/ooPPle3QjI
— Brad Garlinghouse (@bgarlinghouse) September 17, 2022
Ripple’s General Counsel, Stuart Alderoty, also commented on the development, stating that the SEC is yet to identify any contract for investment after two years of litigation.
“[The SEC] cannot satisfy a single prong of the Supreme Court’s Howey test. Everything else is just noise,” Alderoty added.
My hot take – after two years of litigation, the SEC is unable to identify any contract for investment (that’s what the statute requires); and cannot satisfy a single prong of the Supreme Court’s Howey test. Everything else is just noise.
— Stuart Alderoty (@s_alderoty) September 17, 2022
In a similar development, attorney Jeremy Hogan, a Partner at Hogan & Hogan law firm, said the Securities and Exchange Commission now has big problems following the recently filed motion for summary judgment.
Video TOMORROW!
I just read the briefs and the SEC has got a couple big problems:
1. Its expert agrees that most of the changes in XRP price are due to market forces (and not Ripple). Ouch.
These types of concessions are perfect for summary judgment. 1/2 https://t.co/Hvs2p2j8D5 pic.twitter.com/lt9u1BX4pI
— Jeremy Hogan (@attorneyjeremy1) September 18, 2022
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