Former Ripple partner MoneyGram International has filed a motion at the US District Court of New York to seal parts for the summary judgment on the going Ripple lawsuit. Earlier in September, the Securities and Exchange Commission (SEC) and the blockchain firm requested a summary judgment on the ongoing legal dispute.
In 2019, Ripple bought a $30 million stake in MoneyGram. At first, both firms agreed to continue the partnership or two years. As per the deal, MoneyGram was allowed to utilize Ripple’s cross-border payments.
On March 9, 2021, Garlinghouse tweeted, “While the lack of a crypto reg framework has needlessly muddied the waters for US business and consumers, there’s no denying what Ripple and MGI have achieved together. Billions of dollars have been sent and settled across borders through ODL w/ XRP.”
Meanwhile, after the termination of the deal with Ripple, MoneyGram indirectly allied with Ripple. Earlier in December, it collaborated with one of Ripple’s current partners Frente Corretora to introduce “”A new remittance service in Brazil with no costs for consumers.”
Ripple Vs SEC: an endless battle
The SEC sued Ripple Labs Inc at the end of 2020 for marketing XRP tokens on its platform. The SEC stated that it comes under unregistered securities. From 2013 to 2020, Ripple Labs Inc raised its capital to $1.3 billion by selling XRP tokens on the platform. In December 2020, the SEC filed a case against Ripple for selling XRP tokens.
By the end of October 2018, more than a hundred banks were registered, and most of them started using Ripples X’s current messaging innovation. Due to security issues, they avoided the utilization of XRP cryptocurrency.
As per US laws, if the SEC wins the case against Ripple, XRP will be considered as a security rather than currency in the nation. It follows that similar cryptocurrencies will be considered as securities as well. So the hearing will be important to all digital asset shareholders, including blockchain developers and investors.
If the court rules in favor of Ripple, it will benefit the blockchain and crypto industry and encourage innovation and development of blockchain based projects. If the decision goes against Ripple, it will hamper investor confidence in the sector and simultaneously slow development in the crypto ecosystem.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/01/07/ripples-former-partner-files-motion-to-protect-business-info/