The SEC filed an objection to Motion to Seal documents with recording of various Ripple meetings
The The US Securities and Exchange Commission (SEC) has filed an objection to Ripple’s Motion to Seal documents in connection with the recording of various Ripple meetings. Ripple’s Motion to Seal has already been granted on an interim basis.
Source: James K. Filan
Another SEC lawsuit Howler sees Ripple pulling away
According to renowned corporate lawyer and expert in commercial litigation who founded Connecticut-incorporated Filan LLC, James K. Filan, further updated that the agency filed a one-page further response regarding the now moot Motion to Compel regarding the recordings of the Ripple meeting.
Source: James K. Filan
Before, the Securities and Exchange Commission (SEC) has admitted that before instigating legal proceedings against Ripple, it never informed inquiring third parties that it considers XRP as a security.
“…the Commission admits that before the filing of this case certain third parties inquired about the legal status of XRP. However, the Commission did not state a view one way or the other in response”, SEC stated.
The comment came out in a request for admissions to the SEC document attached to the latest court filing. What’s more, this piece of evidence now forms an official admission in the case.
On balance, Ripple has undoubtedly come out on top. For example, in compelling the SEC to answer if Ethereum is security recently. This point strengthens Ripple’s case regardless of how the SEC answers.
“If the answer is no, then it opens the door for Ripple to compare XRP to Ether. And as we know, only Ethereum had an ICO… Yes, is not a politically fathomable answer for the SEC”,
An important aspect of the defense is fair notice. This confirms that Ripple has assumed that XRP, Bitcoin, and Ether are equivalents in the eyes of the SEC. Regarding the SEC’s latest bombshell admission, by claiming they refused to clarify XRP’s legal status prior to litigation, they have effectively acted as a defense of fair notice by admitting that no reasonable notice has been given.
However, that is not a cut and closed case as Ripple will still need to prove XRP is not being sold in a manner consistent with a security offering. As AZCoin News reported, SEC has threatened to sue Coinbase Global Inc if the crypto exchange goes ahead with plans to launch a programme allowing users to earn interest by lending crypto assets, Coinbase said on September 8.
Billionaire investor Mark Cuban panned the SEC response by labeled it Regulation via Litigation.
— Brad Garlinghouse (@bgarlinghouse) September 8, 2021
He advised Armstrong to go on the offensive. In an amusing take on this, Ripple CEO Brad Garlinghouse responded to Armstrong by tweeting a meme from the Die Hard movie captioned with “welcome to the party, pal.”
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