Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Ripple Wins Some, Loses Some, As The SEC Lawsuit Continues

Ripple Wins Some, Loses Some, As The SEC Lawsuit Continues

Ripple's attorney Jeremy Hogan on behalf of the payment giant recently filed a “motion to compel responses to interrogatories” in which they ask the SEC to clarify whether Ethereum's ETH is a security.

Ripple’s attorney Jeremy Hogan on behalf of the payment giant recently filed a “motion to compel responses to interrogatories” in which they ask the SEC to clarify whether Ethereum’s ETH is considered a security.

Jeremy Hogan pointed out that this line of questioning is an “AMAZING” move, in that, regardless of the answer given, the SEC will weaken their case.

Just last month, at the Aspen Security Forum, SEC Chairman Gary Gensler would not give an answer to the same question. Gensler’s answer or better yet, the lack of it, would indicate that the SEC does not wish to expose itself any further.

Now that the same question is being asked in a formal court setting, the SEC is somewhat forced to providing a response.

The SEC filed a lawsuit against Ripple in December before Christmans last year. The SEC accused Ripple of having engaged in $1.3 billion of illegal securities sales since 2013.

During the discovery phase that followed and is still ongoing, Ripple’s legal team has built a defense on multiple aspects, chief of which is the fair notice defense.

Ripple’s defense argues that the company was under the assumption that XRP, Bitcoin, and Ether were classed as equivalents in the eyes of the SEC.

Given that former SEC Director William Hinman had previously said neither Ether nor Bitcoin fit the bill as securities, Ripple presumed the same regarding XRP. Also, the SEC did not give fair notice otherwise, leaving Ripple unaware of breaching applicable securities law.

SEC has conveyed Hinman’s approval of Ether/Bitcoin as only a ‘personal opinion’ and should not have been construed as a stance held by the regulator.

The whole admission has now opened up a can of worms. Point being that if ETH is considered a security, why were they allowed to operate without impediment? And, if not, on what grounds has the SEC singled out Ripple?

Win-Win for Ripple
Hogan points out that taking a formal stance on Ether’s securities status puts the SEC in a difficult spot, no matter how they answer.

“If the answer is “no,” then it opens the door for Ripple to compare XRP to Ether. And as we know, only Ethereum had an ICO…

“Yes,” is not a politically fathomable answer for the SEC.”

Alternatively, a response along the lines of the Ether’s status has yet to be determined would strengthen Ripple’s fair notice defense.

If the SEC can’t determine whether Ether is a security, how can Ripple be expected to know they were breaching securities law by selling XRP tokens?

Read the full article at Fintechs.fi

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Hungary Ranked Among the World’s Safest Travel Destinations for 2025
G7 Leaders Fail to Reach Consensus on Key Global Issues
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
×