Ripple Lawsuit Recap👨‍🏫
In a nutshell, the SEC is arguing that XRP is a security because it involves an investment of money, in a common enterprise, with an expectation of profit that is being driven by the actions of a third party.
The SEC’s evidence for third party expectations of profit is how XRP was used and marketed by Ripple, Brad, and Chris to partners, clients, and retail investors.
Because Ripple, Brad, and Chris have been selling XRP for years without registering it as a security with the SEC, this means that those sales of XRP were illegal.
🤼XRP Army In Court?🤼
Just over a week after the lawsuit was announced, attorney John Deaton filed a 90-page petition which called for the courts to take the interests of XRP holders into consideration.
The petition argued that the SEC isn’t fulfilling its explicitly stated mission of protecting investors by pursuing Ripple and its top executives.
Instead, the SEC’s suit against Ripple did the opposite by crushing the price of XRP, and the regulatory scare caused many US exchanges to delist XRP which further added fuel to the fire.
đź“°Ripple & XRP Newsđź“°
The US based Uphold crypto payments and asset trading app noted they would not be delisting XRP until the dust has settled.
A former Ripple advisor was tapped as a potential candidate to become the next comptroller of the currency which an administrative position for the US federal banking system.
A Ripple board member was also pardoned by the outgoing US president. The top adult entertainment website also enabled support for XRP payments.
âš–Ripple Lawsuit Updateâš–
The first pretrial hearing took place on February 22nd where lawyers from both the SEC and Ripple again restated their arguments.
Ripple’s lawyer dropped a bombshell that the SEC had been approached by an unnamed cryptocurrency exchange in 2019 which was wondering if XRP was a security, and the SEC did not say no.
In a virtual hearing in late March, SEC’s legal brass noted that only the sales of XRP made by Ripple, Brad, and Chris constitute the sale of a security, and that all sales by exchanges and individuals does not.
Earlier this month, the court granted Ripple’s request to see the SEC’s internal discussions about cryptocurrencies.
