The legal tussle between Ripple and the U.S SEC has been a tug of war of sorts. With no end meeting, leaving investors and traders are in a dilemma. Because of which the makers and investors have dealt with huge losses. On the contrary, Ripple does hold ace cards in its deck, against the allegations by the U.S SEC.
It is widely known that Ripple had sought SEC’s guidance for years, but never received any. However, the SEC then filed a $1.3 billion enforcement action. Alleging that every XRP sale since 2013 to be an unregistered security. Meanwhile, Judge Netburn has made orders on two motions, one against each. And crypto proponents bring to notice how the allegations are a threat to the crypto industry and not just Ripple.
What Does the Order From Judge Netburn Hold for Ripple and the SEC?
CryptoLaw firm enlightens the orders made by Judge Netburn on the two motions. One of each is for the defendants and the U.S Securities and Exchange Commission. The order from Judge Netburn has brought a glimmer of hope amongst netizens. Hoping for an end game in the conflict.
Judge Netburn orders the SEC to answer Ripple’s interrogatory and to pin down the specific terms of the investment contracts from the sale of XRPs. And an answer to whether the SEC contends Ripple’s efforts are necessary to influence any increase in prices of the coin.
Netburn also grants most of the motions from Ripple to compel answers. Except for, the motion from the co-founder of Ripple, Chris Larsen. On when XRPL was fully functional. Which is contradicted without prejudice for being “too vague”. In addition, Both parties need to clarify their terms.
Netburn has made grants to some and denies some of the SEC’s motions for protective orders. Notably granting protection on defendants 28,849 RFAs, Writing,
“It is hard to view this stunt as anything more than theatre”.
SEC Allegations Against Ripple Are for the Entire Crypto Industry?
Crypto proponent brings to notice, how the allegations from the U.S Securities and Exchange Commission, against Ripple. Are subjective to the entire crypto space, and not just to Ripple. Owing to the claims made by the governing body, which concern all of the digital coins. The allegations here are not one or two, but numerous.
Ripple CEO accuses SEC that it helped Ethereum claim its second position by market cap. Netizens, to which believe it justifiable, as XRP was the second-largest crypto as of late 2017. And the clarity given to Ethereum did propel it significantly.
Ripple has been losing newer customers from the U.S. However, some reports suggest that the usage of XRP as a bridge currency has experienced immense growth. The on-demand liquidity grew 103% in Q3 this year, from the Q2 of this year. The growth here is all coming from outside of the U.S.
SEC Commissioner Hester Peirce believes that complying with the SEC rules to be a tremendously hard and time-consuming task for crypto companies. And that the SEC should invest in a reasonable framework. As it will bear fruitful results down the lane. Netizens are hopeful of the case subsiding at the earliest, as it has caused more harm than it should.