SEC may lose on these grounds in the Ripple lawsuit, crypto lawyer echoes community belief

It has been 800 days since the Ripple-SEC lawsuit was initially filed. The Securities and Exchange Commission (SEC) filed a complaint against Ripple Labs Inc. and two of its executives on December 22, 2020, saying that they raised more than $1.3 billion through an ongoing, unregistered issuance of securities backed by digital assets.

The complaint alleges that in 2013, Ripple sold investors in the US and other countries a digital asset called XRP as part of an unregistered security offering. Ripple battled for its position and made a strong case before the court over the days that stretched into months as the litigation developed. Also, the SEC made their case. The judge’s decision is sought since the summary judgment motions have been properly presented.

The cryptocurrency community was polled by an XRP fan known as Mr. Huber on Twitter to determine whether Ripple’s rebuttal and supporting documentation outweigh the SEC’s accusations and charges.

94.7% of voters chose the option that Ripple’s defense and supporting documentation were stronger, while just 5.2% chose the option that the SEC should have made more serious charges and claims.

Crypto enthusiast and attorney Bill Morgan commented on the poll’s results, stating that while Ripple’s case appeared stronger as the information and arguments came to light, the SEC’s request for summary judgment and memorandum of law are “prima facie compelling.”

John E. Deaton, the founder of CryptoLaw and a lawyer for XRP investors, thinks the SEC risks losing if it chooses a general transactional strategy rather than “mudding the waters with XRP itself representing an investment contract.”

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