Cryptocurrency

Ripple, SEC heading for expiration after ‘expedited ruling’ lifted

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The US Securities and Exchange Commission (SEC) and Ripple Labs have both called for a federal judge to issue an immediate ruling on whether Ripple’s XRP sales violated US securities laws.

In separate petitions filed on 17 September by ripple and the SECBoth have requested a summary judgment in the US District Court for the Southern District of New York.

Urgent judgments are brought to the courts when the interested party believes that there is sufficient evidence on hand to render a judgment without the need to proceed to trial.

Both parties called on Judge Annalisa Torres to issue an immediate ruling on whether Ripple’s XRP sales violated US securities laws. Ripple has argued that the SEC has run out of answers to prove that sales of XRP constitute an “investment contract,” while the SEC has stuck firmly to its belief that it is.

Ripple CEO Brad Garlinghouse said in a Twitter post on September 17 that the filings made clear that the SEC was “not interested in law enforcement.”

“They want to reformulate everything in an impermissible effort to extend their jurisdiction beyond the authority conferred on them by Congress,” he said.

Meanwhile, Ripple’s attorney general, Stuart Alderoty, noted that “after two years of litigation,” the SEC is “unable to determine any investment contract” and “cannot meet one aspect of Howey’s Supreme Court test.” .

In its request for an expedited judgment, Ripple claimed that the SEC case “is boiled down to the unacceptable assertion of jurisdiction over any transfer of an asset.”

The proposal also argued that the SEC could not prove that XRP token holders could not “expect reasonable profits” based on Ripple’s efforts due to the lack of contractual obligations between Ripple and XRP token holders.

On the other hand, the SEC proposal for an expedited ruling argued that there could be an “investment contract” without a contract, any rights granted to the buyer, and without any obligations to the issuer.

But Ripple argued in its movement, “This is not and should not be the law, because without these essential features there is nothing to which the Howey test could reasonably be applied.”

Related: SEC vs. Ripple lawsuit: Everything you need to know

Instead, Ripple referred to the profits that come from “market forces of supply and demand,” something that the Securities and Exchange Commission “waived” according to the Ripple movement.

The significance of this acceptance was highlighted Written by US Attorney Jeremy Hogan on September 17 on Twitter, “These concessions are perfect for a summary judgment.”

community reaction

The introduction of Ripple and SEC moves brought mostly positive sentiment from the XRP community, with one Twitter user believing the “end is near”:

The request for a summary judgment comes nearly two years after the The SEC has filed a lawsuit against Ripple, Former CEO Christian Larsen and current CEO Brad Garlinghouse in December 2020 allegedly raised $1.3 billion through sales of unregistered securities through XRP.

If the court implements the summary ruling, the court’s decision will have a profound impact on which cryptocurrency constitutes security under US securities laws.

The XRP token rallied to levels not seen since July after the move was introduced – it almost reached 0.40 USD, But it has fallen a bit since then and is currently priced at $0.34, according to CoinGecko.