While the lawsuit continues, the United States SEC has filed its most recent filing against Ripple Labs.
The SEC accused Ripple of selling unregistered securities regardless of the requirement to register securities under the US Securities Act of 1993 (the “Securities Act”).
The lawsuit treats the Ripple Digital Asset (XRP) as collateral and treats the distribution of XRP in exchange for currency, labor, or market-making activities as a security offering. In addition, according to the SEC, XRP cannot be classified as a currency, so it is not excluded from the protection registration requirement. The SEC relied on the comments of Ripple officials, who categorically deny that XRP is a currency and highlight the differences between XRP and Bitcoin.
Rosie Rios, who served as the 43rd Treasurer of the United States under President Barack Obama, will join Ripple’s boardtogether with Kristina Campbel.
The Sec Legal Battle Against Ripple
Attorney James K. Filan updated the SEC vs. Ripple case on Twitter on May 7, and plaintiffs had filed a coercion motion against Ripple following the latest update. This application requires that plaintiffs provide evidence of legal advice they have received or have received in connection with XRP offers and sales. And whether these sales and offers comply with federal safety regulations.
#XRPCommunity #SEC_NEWS v. #Ripple #XRP #SEC_NEWS files a motion to force #Ripple to produce legal advice documents. /t.co/20hEfxU0om
– James K. Filan (@FilanLaw) May 7, 2021
Deaton has been implicated since April 19, when he filed to intervene in the SEC vs. Ripple case. He’s served thousands of XRPs on this one since the beginning of the year. The SEC regards Ripple’s security as a “real threat,” according to the thread, which consists of four tweets.
Ripple claims that the legal memos are only general advice that it is possible to use and sell XRP in ways that violate securities laws, but that XRP is not a defense in and of itself. In two of the tweets, Deaton said it will be interesting to see if the judge will order Ripple to hand over the memos.
#XRP 🆚 @SEC_News
The SEC just filed this letter requesting a conference asking whether @Ripple needs to pass on the legal notices received in 2012 on #XRP and how XRP, if marketed and sold in a certain way, is unregistered Security can be viewed.
Back in January I got https://t.co/hyUHvnRlXM
– John E Deaton (@ JohnEDeaton1) May 7, 2021
Brad Garlinghouse and Chris Larsen, the two CEOs of Ripple Labs at the center of the case, filed individual motions for dismissals last week. In response, the SEC filed a response to the filings. The answer, which could be up to 60 pages, met with opposition from Garlinghouse and Larsen. Filan, on the other hand, could not provide any information about her non-consent.
This is the final step in the legal battle between Ripple Labs and the Securities and Exchange Commission. In this case, there has been a plethora of requests and responses over the past few weeks, and it still required some ripple to include valid evidence of XRP sales.