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Ripple v. SEC court case update as of February 6, 2023

Ripple v. SEC court case update as of February 6, 2023

Individuals involved in the Securities and Exchange Commission (SEC) and Ripple cases are now playing a waiting game to see what happens next. For the time being, the participants maintain their optimism and the strength of their respective defenses.

In recent developments, Ripple’s General Counsel, Stuart Alderoty, has referred to the SEC case as “misguided.” Alderoty shared a picture in a tweet on February 5 comparing the situation to the U.S. Air Force shooting down an alleged Chinese spy balloon to emphasise his viewpoint on the case.

It’s important to note that Finbold quoted Alderoty as saying that the situation has significant ramifications for how cryptocurrencies will be regulated in the future in the United States.

Recall that the SEC charged Ripple Labs with selling XRP as unregistered securities and breaking American securities laws. Notably, both parties have expressed optimism about winning the case as it moves to the summary judgment, whose date has not yet been set.

Previously, John Deaton, the founder of Crypto Law, stated that the SEC’s arguments were “schizophrenic,” particularly regarding what constitutes a common enterprise. Deaton stated in this line that the presiding judge could deny summary judgment.

The XRP community has been following the case between the SEC and the blockchain-based sharing platform LBRY as it nears its conclusion. In this case, the regulator sued LBRY for selling its LBC tokens without first registering with the regulator. However, the judge ruled that LBC tokens are only considered securities when sold directly.

As a result, the value of LBC tokens increased, with legal experts warning that if Ripple wins the case, the same fate may befall XRP.

Notably, with no set date for a ruling, interested lawyers have speculated on a possible resolution date. For example, James K. Filan, a U.S. defense lawyer, believes the issue will be resolved by March 31, 2023.

Sealing of documents

Aside from the general ruling, there is also speculation about the types of documents that the court will decide to keep secret from the public. Surprisingly, the SEC filed another motion to seal specific documents, causing outrage in the cryptocurrency community. Ripple, in particular, had filed a motion objecting to an investment banker’s request that their information is kept private. 

However, in their response to the objection, the unknown declarant stated that revealing their identity could have a negative impact on future investigations by discouraging witnesses from cooperating due to a lack of confidentiality assurances. 

Meanwhile, as Ripple fights the SEC, Craig Wright, a computer scientist, and self-proclaimed Bitcoin (BTC) creator, has called the company’s viability into question. According to Finbold, Wright lashed out at XRP supporters, calling them a “cultist army” and claiming that the entire project would end up being a pyramid scheme.

XRP price analysis

XRP is currently trading at $0.40, down nearly 4% in the last 24 hours.

 

 

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