Ripple Labs has been dealing with a case against SEC since 2019. The firm is still facing the charges brought by the SEC about collecting funds by offering unregistered securities in the form of its native currency called XRP. However, one of the Ripple Labs executives who are wanted in the case has recently expressed the hope that the case will conclude by the end of the current year.
Keeping up with their stance, the defense team of Ripple Labs has decided to file a new proposal in court. Media reports have confirmed that the defense has submitted a Letter of Supplemental Authority to boost the fair notice plea. This letter was expected as soon as the case winning in the matter of the Voyager acquisition was done. This letter has presented the example of Judge Wiles in the matter of the Voyager bankruptcy ruling. This ruling has rejected the legal precedent of the SEC to try a cryptocurrency firm and product.
Ripple Labs is speeding up the proceedings of the case that has been pending for years without a conclusion
Ripple Labs have spent millions on legal fees and other expenses on account of the case related to the SEC court. The defense has therefore submitted a new letter addressed to Judge Torres referencing the stance of the court regarding the jurisdiction of the SEC on a cryptocurrency firm. This court ruling is in line with the fair notice rebuttal that was already presented by defense attorneys. The case that Ripple has quoted in the court recently concerns another attempt by the SEC to block the purchase of Voyager.
Voyager had filed for bankruptcy on account of issues related to liquidity. The firm was in the process of getting a merging offer from Binance exchange. However, SEC officials filed a petition in the court of law to bar the acquisition.
Much like the Ripple Labs case, the Voyager lawsuit was also under hearing in the Southern District Court of New York. Judge Wiles who is heading the bankruptcy proceeding for Voyager rejected the blockage petition by SEC claiming that the agency failed to produce proper results to prolong the delay that will keep investors away from their funds for longer.
The ruling by Judge Wiles is used by other cryptocurrency firms to establish the vague legal nature of cryptocurrencies
During his ruling to accept the bankruptcy plan of Voyager, Judge Wiles claimed that the government has not established a precise legal definition for the qualification of cryptocurrencies as commodities or securities. It is important to note that SEC Chief recently purported all PoS blockchain project as unregistered securities while he maintained that Bitcoin was a commodity. However, legal experts have maintained that since every blockchain has a unique trading model SEC needs to treat each cryptocurrency on a case by case basis.
Meanwhile, there is still a considerable gap in the legal definition of the nature of cryptocurrencies as either securities or commodities. Thus far, regulatory agencies have only tried various crypto firms and projects on personal judgment.
Lead Defense for Ripple, John Deaton has recently told media that he is planning to gather various crypto firms that SEC has tried to strengthen the case. He has also talked about the ruling record of Judge Torres claiming that she usually does not delay a summary judgment.
SEC Issues Investors Alert Regarding Cryptocurrency Securities
Bitcoin’s Upward Price Journey – BTC to Hit New All-Time High (ATH) Value
U.S. Defense Bill 2024 Removes Crypto Regulations from the Legislation
You have not selected any currencies to display