Ripple Cites SEC Commissioners’ Remarks to Support Dismissal of Case

Ripple lawyers submitted a supplemental letter Monday to support their request for dismissal of an ongoing SEC case against them.

July 20, 2021, | AtoZ MarketsLawyers representing Ripple CEO Brad Garlinghouse and co-founder Chris Larsen have filed additional notices in support of the request to discontinue the SEC-initiated case. This was announced by attorney James Filan.

The document mentions the case of Blotics, the operator of the cryptocurrency site Coinschedule, and the statement of SEC Commissioners Hester Pierce and Elad Roizman on July 14, 2021.

Ripple’s lawyers call SEC claims insolvent

In their opinion, the regulator did not explain which digital assets promoted by Coinschedule are securities.

“[This] indicates our reluctance to provide additional guidance on determining whether a token is being sold as part of a securities offering or which tokens are securities,” the commissioners said in a statement.

Ripple’s lawyers indicated that the position of the SEC representatives “confirms the existence of significant regulatory uncertainty” regarding the classification of digital assets.

The commission also failed to prove that the defendants knew or ignored the requirements to register XRP tokens as securities, the petitions said. The lawyers demanded to declare the SEC claims legally insolvent.

Last Thursday, Judge Netburn ordered the ex-director of the SEC, William Hinman, to sit for the deposition and drilled down on his 2018 speech where he mentioned that Ethereum and Bitcoin were not securities. Now, he must clarify the principles for making this decision.

This is not a run-of-the-mill SEC enforcement case,” she said, “but a case that involves significant policy decisions in our markets, the amount of controversy is substantial and the public’s interest in this case is significant.”

SEC’s legal team likely knows that Hinman’s answers to Ripple’s questions could sink their case and their credibility as an agency. It invites a ruling that could bring the SEC’s farce of fair notice to an end.

On July 16, Filan said that Hinman’s speech in court was postponed until July 27.

In April 2021, Netburn granted Ripple’s petition for access to SEC documents revealing its “interpretation and views” of Bitcoin and Ethereum.

Earlier, the court denied the agency access to the records of Ripple’s legal advice regarding XRP’s legal status but allowed it to request information about the company as part of a memorandum of understanding with foreign regulators.

We will also remind you that on June 15, the SEC achieved a 60-day extension of the period for the exchange of evidence in the course of the proceedings with the fintech company.

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