Lawsuit against Ripple Labs also focuses on Bitcoin and Ethereum
Ripple Labs is seeking to force the SEC to produce documents it holds on Bitcoin and Ethereum to prove that the lawsuit was filed unlawfully.
In the ongoing case of Ripple v. U.S. Securities and Exchange Commission (SEC), the SEC last week refused to produce documents it has on Bitcoin and Ethereum. They argue Bitcoin Up that the request is irrelevant to the case.
Yesterday, however, Ripple Labs filed a reply brief with Judge Sarah Netburn asking the SEC to produce the requested documentation.
Why is Ripple’s XRP considered a security?
The SEC filed a complaint against Ripple in late December alleging that the company and two key executives sold XRP tokens that they considered unregistered securities.
A lot has happened in the three months since. Most notably in terms of damage to the XRP price and the departure of key partners and exchanges. However, during the fall, the price of XRP has recovered to some extent from its low of $0.18.
Currently, there are four main motions on the case. The first is to compel the disclosure of documents relating to the financial information of CEO Garlinghouse and Chairman Larson.
The second is the SEC’s motion to strike Ripple’s „fair notice“ defence. The third is Garlinghouse and Larson’s motion to dismiss the case against them.
And finally, Ripple’s motion as to why it took the SEC seven years to file suit.
Yesterday’s filing of the reply brief could bring additional complexity to this case. The law firm representing Ripple says the documents the SEC has on Bitcoin and Ethereum are relevant because they are comparable to Ripple’s XRP.
SEC gives Bitcoin and Ethereum the green light
In June 2018, former SEC director William Hinman gave a speech in which he gave the green light to Bitcoin (to buy Bitcoin at eToro guide) and Ethereum.
„When I look at Bitcoin today, I don’t see a central third party whose efforts are a game changer. The network on which Bitcoin operates is functional and seems to have been decentralised for some time, perhaps from the beginning.
And putting aside the fundraising that accompanied the creation of Ether, from my understanding of the current state of Ether, the Ethereum network and its decentralised structure, current offers and sales of Ether are not securities transactions.“
Ripple’s legal team wants to know if there was a perceived equivalence between the primary digital assets. If so, on what basis is XRP being segregated?
What legal experts say
Lawyer Jeremy Hogan also has an opinion on this latest twist: he would be shocked if the judge did not uphold the reply brief.
Hogan added that depending on the content of the documents, the SEC could be charged with „knowing misconduct“.
As the case has progressed, Ripple’s legal arguments have become more compelling. The question is, will Judge Netburn consider Bitcoin and Ethereum (to buy Ethereum via Paypal guide) relevant to Ripple’s case?