Ripple and the Securities and Exchange Commission (SEC) have been involved in a legal brawl since December 2020. Ripple says the decision might favor it. The court papers of Friday by Ripple Labs Inc. suggest that the United States Supreme Court decided to approve their key defense against the country’s financial watchdog, the SEC’s case involving XRP.
The Tuesday ruling, according to the San-Francisco-based company, could limit the ability of the government to penalize American taxpayers for failing to report foreign bank accounts. Further, federal law must provide a “fair warning” about what they consider wrong.
Ripple requested Analisa Torres, the United States District Judge to consider this important decision while ruling the SEC case. The SEC accused the crypto company and its former and current chief executives of conducting a con of $1.3 billion by offering unregistered securities via selling XRP, a token created by Ripple in 2012.
Since day one, Ripple and the accused executives have denied all the allegations. Moreover, the company has been arguing with the authorities that XRP trading is and has been used as a digital currency and not as securities.
At the same time, the SEC also argued with Judge Torres to consider that Ripple had prior knowledge that XRP is a security under US laws. To counter that, the company and its executives proclaimed that the laws were vague and that the bifurcation of XRP being a security or not was ambiguous and must go to a fair trial.
Judge Torres here has the power to decide whether a trial is required and could also say that confirming that XRP is a security is unnecessary. This could greatly narrow the scope of the case before the jury, facilitating swift decisions. However, a final ruling over the case can only decide if the digital asset in question is a security or not.
The SEC thinks that the XRP token of the Ripple labs should be considered a security, and the case has been dragging on since December 2020. The importance of this case is paramount, as its ruling can potentially affect the entire crypto industry. However, many believe that the lawsuit could come to a decision soon, as it has already entered its third year.
Ripple’s Chief Legal Officer, Stuart Alderoy, said on February 20, 2023, that he expects the company to succeed against the SEC’s bullying. He further explained his reasons in a tweet.
Team Ripple also shared their winning confidence that in the hands of judge Analisa Torres, the company could expect a quick and swift decision at the United States Southern District Court of New York could provide a quick verdict.
While speaking to the media, the CEO of Ripple, Brad Garlinghouse, said that the team is optimistic that the case could be resolved in 2023. The probability of it coming out in Ripple’s favor is high, and observing further procedures would be very interesting.
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/2023/03/05/supreme-courts-ruling-can-favor-ripple-against-the-sec/