SEC’s Battle With Ripple Labs Nears Its End Following Parties Application For Summary Judgement ⋆ ZyCrypto
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- Ripple Labs and the Securities and Exchange Commission have filed motions for summary judgment in the two-year-old case.
- Both sides argue that a federal judge has enough evidence to make an immediate decision.
- A breath of fresh air as the Ripple Community sees the light at the end of the tunnel.
After two lengthy lawsuits that caused uncertainty in the price of Ripple (XRP), the end is finally in sight.
On September 17, the Securities and Exchange Commission (SEC) and Ripple Labs filed separate motions in the US District Court for the Southern District of New York seeking summary judgment to determine whether Ripple violated securities laws. The SEC has been tough on Ripple after filing a lawsuit against the company and two executives, Chris Larsen, Ripple’s founder, and Brad Garlinghouse, the company’s CEO, in 2020.
It’s been two years of numerous discoveries and legal back-and-forth between the two, and Ripple has maintained that it hasn’t broken any laws. Ripple claims that the $1.3 billion raised by offering XRP was not a security because the essential ingredients of the Howey test are missing. The summary judgment the parties filed with Judge Analisa Torres may well be the end of this protracted legal battle.
The summary judgment means the court has been asked to determine whether Ripple has violated the Securities and Exchange Act based on the documents before it, without necessarily forfeiting a full trial. Garlinghouse seems confident, tweeting that the SEC is acting outside its jurisdiction when stressing that XRP is not a security.
“They want to do it all again without authorization in an effort to expand their jurisdiction far beyond the authority Congress has given them.” wrote Garlinghouse.
What is XRP waiting for?
As the cryptosphere waits for Judge Analisa Torres’ imminent decision, reactions have trailed the decision to seek summary judgment. XRP has had more community support since the beginning of the saga. The price of XRP has caused concern for many, as many analysts suggest that it has not reached its full potential.
The price, which once exceeded $3, is currently trading at $0.48. Ranked 6th by market capitalization, XRP could have fared much better over the past two years without the SEC. At the end of this case, Ripple may go public, as the CEO said in May that they are considering an alternative.