The past year has been a war tussle between Ripple, a blockchain company, and the U.S. crypto regulatory body. The Security Exchange Commission (SEC) and the cross-border payment company have met severally in court, in which the court rulings seem to be in favor of Ripple.
U.S SEC Suffer Defeat Again Following Court Ruling
The court case between Ripple and the U.S. SEC seems not to end anytime soon. The lengthy case has been epic and iconic in the cryptocurrency industry.
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Before the lawsuit pushed by Ripple, the SEC had been making moves in the cryptocurrency space without being checked or sued. However, Ripple’s CEO failed to bow to the regulatory agency and slammed the lawsuit against the body.
The fight was aimed at liberating the cryptocurrency industry from the excessive use and abuse of power by the commission. Fortunately, most court sessions ended in the Security and Exchange Commission’s defeat.
Earlier, the crypto regulatory body was hit by another defeat following the approval of a motion proposed by Ripple. The blockchain company proposed a motion to the court on the 4th of August to check all public comments made by the commission officers.
The motion was approved by Judge Netburn, who gave the company authority to authenticate the SEC comments. Although, the commission disapproved of the authentication stating that the company was trying to open fact discovery.
The Security and Exchange Commission also requested a chance to make a new fact discovery and possibly file a subpoena against invalid remarks. The Ripple and SEC case doesn’t seem to be ending soon.
The Never-Ending Ripple VS United States SEC Case
Ripple, a 2012 founded company, was accused of alleged fraud and offering of its native currency, XRP, which was tagged securities. The accusations were made by the U.S. SEC in December 2020. However, the company failed to dance to the tune of the commission, which caused the commission to sue the company.
The crypto regulatory Commission sued Ripple and its management to court over the listing and sale of its token, which was alleged illegal security. The cross-border payment company argued that the seventh-ranked crypto in the world by market Cap is a digital currency, not an investment contract.
Ripple founder and C.E.O Brad Garlinghouse stated that the company wouldn’t give into the agency, so he hired top lawyers to defend the company in court. Throughout the court sessions, the blockchain company lawyers have defended the company against the company allegations.
The court move made by Ripple has been generating reactions from cryptocurrency users and enthusiasts. There are comments that the company is setting up a legacy for other companies in the cryptocurrency industry to stand up against the body if their rights are infringed.