The US SEC believes that the wrong decision in the case against Ripple could set a dangerous precedent for the regulator.
June 8, 2021 | AtoZ Markets – The US Securities and Exchange Commission (SEC) is trying to mislead the court by citing its previous lawsuits against cryptocurrency companies. This opinion was expressed by the defense of the fintech company Ripple in an appeal to Judge Analisa Torres.
Ripple asks SEC not to cite 70+ lawsuits against crypto firms
In particular, the exchange regulator refers to a study by a private consulting firm Cornerstone Research. According to the firm's report, the SEC has filed over 70 lawsuits against crypto companies. On this basis, the regulator believes that Ripple was aware of the status of XRP as a security. However, as the Ripple defense notes, the regulator had never publicly announced such a number of claims before.
"The commission is asking the court to take note of the 'court notice' with which it is trying to smuggle 'more than seventy cases' into the lawsuit, the vast majority of which were never mentioned in the opening statement," Ripple's defense said.
According to the fintech company, the SEC's accusations that XRP is a security are the first in court practice. Ripple also claims that the regulator has never notified the company of a violation of the law due to XRP sales.
At the same time, the SEC claims that Ripple was aware of the status of XRP, and the company itself cannot reasonably explain the alleged lack of notification.
SEC intimidates the court with consequences in the event of a loss
The exchange regulator also believes that the loss "will harm the SEC far beyond the scope of this case."
“The court should avoid setting precedents with such far-reaching consequences,” SEC officials said.
According to the regulator, in the event of a loss, future defendants will be able to refer to the decision in the Ripple case.
As a reminder, the head of Ripple Brad Garlinghouse said that the company may go public when the trial is over. However, it remains unclear whether the outcome of the trial will affect the plans of the fintech company.
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