SEC lawsuit against Ripple would have significant ramifications for the crypto industry

Before the latest developments in the lawsuit between the U.S. Securities and Exchange Commission (SEC) and Ripple, U.S. Congressman Tom Emmer argues that the lawsuit would have significant ramifications for the entire cryptocurrency industry in a recent interview with Thinking Crypto.


U.S. Congressman Tom Emmer

The outcome of the Ripple lawsuit could be a watershed moment for the industry

However, he declined to comment on the outcome of the high-profile legal case since it is up to the court to resolve the disagreement between the two parties. The lawmaker from Minnesota believes that enforcement actions are not the best way of bringing regulatory clarity.

Back in August 2020, Emmer stated that XRP was not security just months before the SEC alleged the opposite in its damning complaint: “First of all, my position’s very clear. XRP is not a security, all right?”

In another development in the ongoing pre-trial discovery phase, as AZCoin News reported, the SEC recently requested over a million Ripple employees’ Slack messages. The SEC claims that the defendants agreed to search all messages at the beginning of the discovery phase. The move is meant to refresh the memories of those witnesses who remained mum during depositions.

Some of the messages that the agency did manage to receive touch upon such uncomfortable subjects as speculative XRP trading and the token’s regulatory status. CEO Brad Garlinghouse once told the public that he was “very, very, very long” on XRP despite making a fortune by selling the token without disclosing that fact to holders.

However, the SEC also appears to be bringing a trial in the case. The defendants recently persuaded the court to approve the deposition of Willian Hinman, the agency’s former top official. The idea that the outcome of the Ripple lawsuit could shape the future of the entire industry is not new.

This conclusion is not new. While the SEC offered a settlement to Ripple, the company did not accept its terms and accepted the fight.

While the SEC offered Ripple a settlement, the company did not accept its terms and embraced the fight. The agency is not bending an inch on its stance even with the new presidential administration. Speaking of SEC Chair Gary Gensler, who recently made waves with comments about strengthening cryptocurrency regulations, Emmer said that his comments were disappointing.

The SEC will likely have to fight to win to avoid a rare and embarrassing defeat as the case is gradually brought to trial.

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