Ripple Lawyers Seek SEC Lawsuit Dismissal – Could XRP Moon Again?

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Last Updated on 6 March 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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Looks like Ripple is going to take a page out of Tether’s playbook in its lawsuit against the SEC. Allow us to recall: Tether simply bullied the New York state attorney into backing off by burying the latter in 2 million documents. The New York state attorney then settled with Tether and slapped them with an 18.5 million fine, which is less than what they make in a week as a company.

Ripple Labs has hired a boatload of law firms and where we expected about a month ago still that Ripple Labs and the SEC could settle the suit, it now looks like the crypto firm’s lawyers want a complete dismissal altogether.

The firm of Cleary Gottlieb argue that:

Mr. Garlinghouse’s XRP sales involved no contract of any kind with the buyers, as his sales were done anonymously over an exchange. Nor were the proceeds of Mr. Garlinghouse’s sales pooled with other buyers in a common enterprise.

And XRP’s value historically has not been correlated with Ripple’s actions, results, or public announcements, but instead with changes in the value of other digital assets, such as bitcoin and ether, that the SEC has publicly declared are not securities.”

Ripple and its top executives are being sued by the SEC which alleged that they illegally sold a security (XRP) and made profits of over $1 billion.

Brad Garlinghouse has however maintained his position that XRP is not a security. In his defense, both in 2015 and 2020 the Department of Justice and the Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”) declared XRP to be a virtual currency.

Advertentie.

XRP bull run?

The rest of the cryptosphere needs to keep and eye on the possible outcome of Ripple’s case as it could indicate how regulators will look at the cryptocurrency industry in the future.

One of the most interesting things to look at however is the price of XRP, which has remained stuck in the same trend ever since the SEC launched it’s lawsuit against Ripple Labs. Should Garlinghouse’s bullying technique prove successful and the SEC willing to either dismiss or settle the lawsuit, many analysts expect XRP to boom as it has missed the 2021 crypto bull run so far.

Furthermore, speaking to Reuters on Friday, Ripple Labs CEO Garlinghouse confirmed that the coin still holds large masses of fans in Asia, and that the company plans to continue growing in that continent. Garlinghouse said:

It (the lawsuit) has hindered activity in the United States, but it has not really impacted what’s going on for us in Asia Pacific.