The crypto town’s biggest lawsuit, which revolves around Ripple has come across another notable event. As The defendants file a letter of them not opposing the unsealing of the legal memos in their entirety. While on the other hand, the SEC files a motion for reconsideration and clarification of Magistrate Judge Netburn’s DPP ruling.
The recent buzz in the lawsuit has struck curiosity amongst the folks of the business. Who have been following up, with the series of events in Ripple’s legal battle. Which is now transforming into a battle of the entire crypto fraternity, owing to the irrational stance of the plaintiffs. That could possibly boomerang to other digital assets from the industry’s directory.
The Defendants Continue To Strengthen Their Stance!
The respective documents around the recent filing are brought in by Defense Lawyer James K. Filan, in a public post. The letter written by the defendants to Judge Torres cites that. It is written in response to the court’s order from the 3rd of February 2022. It is cited that, Ripple and Mr. Larsen do not oppose the unsealing of the legal memos in their entirety.
The defendants have submitted their version of “Exhibit E”, with one limited redaction for the public docket, to which the SEC does not object. The letter requests that the underacted Exhibit E remains under seal, to maintain the privacy of one of Ripple’s equity investors.
The defendants further mention that Ripple does not oppose the unsealing in full of the SEC memo and Ripple’s opposition. However, Mr. Larsen believes that if any part of the legal memos is unsealed, then both the documents should be unsealed in their entirety. Which would give the public access to review the documents.
In the unsealed exhibit, the law firm Perkins Coie advised Ripple Labs that founders who assume its risk could receive XRP. But not employees or investors, as it would risk the digital asset’s identity as security. The guidance from Fin CEN in 2013, inducted Ripple as a user of XRP and not an issuer. This further instates the founders gifting 80% of XRP to Ripple Labs.
Will There Be No End To The Tantrums Of The SEC?
The SEC has submitted the motion for partial reconsideration and clarification of the court’s order from the 13th of January. The motion is limited to the ruling by the court, with respect to the defendant’s motion to compel a single draft. Of the speech delivered by Bill Hinman on the 14th of June 2018.
The recent filing now cites that, the speech was not Hinman’s personal opinion. But was intended to convey that of the Department of Corporation Finance’s position on digital assets. Whereas, Hinman’s declaration on the 23rd of June 2021, cited that the speech was intended to express his personal views.
The plaintiffs now cite that not only was Hinman’s speech used by the SEC staff to provide market guidance. But that the SEC regulations could rely on the views of its division of Corporation Finance. The move has left the industry in a dilemma over the status quo of Ethereum and other digital assets. As the regulating authority continues to flip tables.
Summing up, the brisk moves by Ripple has been instilling faith amongst the XRP army. Who have been raising their voice against the unruly act of the plaintiffs. Although the stance of the SEC is being countered by its own moves in the lawsuit. The act of the plaintiffs is now a growing concern for the industry in general. In contrast, whales and fishes have been accumulating and moving XRP. Which could possibly ignite the bulls.
Source: https://coinpedia.org/ripple/sec-now-a-threat-to-its-stance-against-ripple/