Ripple CEO Brad Garlinghouse is asking a judge to dismiss the SEC lawsuit against them permanently
After two legal wins last week, Ripple CEO Brad Garlinghouse and chairman Chris Larsen are asking a judge to dismiss the U.S. Securities and Exchange Commission’s lawsuit against them permanently.
Ripple CEO and chairman ask the court to drop SEC’s charges against them
According to legal filings on April 12, Garlinghouse and Larsen filed with US District Court Judge Analisa Torres to dismiss the SEC’s first revised complaint against them with bias. If approved, it will end the lawsuit against them and prevent the SEC from returning the same fees in the future.
Garlinghouse’s attorneys in their preliminary statement:
“The SEC is straining to invoke a World War II-era precedent about orange groves to the nascent technology around digital assets and blockchain. It does not work in this case, and this effort to destroy Ripple Labs Inc. (“Ripple”), a vibrant U.S. company that has spent years working to develop technology to make cross-border payments faster, cheaper, and more reliable, will be dealt with on summary judgment.”
They called the lawsuit “the SEC’s extraordinary decision to sue individuals in the face of years of regulatory uncertainty about how it would try to regulate this new technology.
In their statement, Larsen’s lawyers said:
“The SEC seeks to regulate a novel and innovative financial asset by bringing an ill-conceived enforcement action in an undeveloped and highly uncertain area of the law.”
The new legal filings follow last week’s court ruling by US Court Judge Sarah Netburn, who denied the SEC’s request for personal financial information from Garlinghouse and Larsen for up to eight years.
Netburn said in his verdict:
“The SEC’s requests for the Individual Defendants’ personal financial records, apart from those records of XRP transactions that are already promised, are not relevant or proportional to the needs of the case.”
In separate memorandums of law filed in support of the motions to dismiss, the defense attorneys for the Ripple executives argued that the SEC still fails to adequately allege aiding and abetting — that Garlinghouse and Larsen knew or recklessly disregarded that XRP was an investment contract or security and that Ripple was acting improperly in selling XRP. Separately, XRP holders are seeking to intervene in the SEC’s lawsuit as a third party to protect their interests, and are due to file their motion to intervene by April 19.
Although many cryptocurrency exchanges in the U.S. — including Coinbase and Kraken — have suspended the trading of XRP following the SEC’s lawsuit, XRP is still traded on exchanges outside the U.S. The price of XRP has been skyrocketing this month and rose 20% in the last 24 hours. XRP is now trading above $1.60 as of publishing time. XRP’s total market cap crossed $73 billion today, more than the total market cap of Nintendo, which has a market cap of $70 billion.
You can see the XRP price here.
- The Judge Ruled In Favor Of Ripple By Dismissing SEC’s Request To Access Ripple Executives’ Personal Bank Records
- Ripple Is Making Some Progress In Settlement Talks With The SEC While XRP Is Set To Go Live On The WanChain Mainnet