- The SEC battles Ripple, challenging Judge Torres’s ruling just before the deadline
- Ripple’s marketing and investor expectations play a crucial role in the SEC’s appeal
- Ripple’s top executives hit back at the SEC with strong statements
- XRP continued to pump after the SEC’s opening brief filing
With only a couple of hours before the deadline ends, the U.S. Securities and Exchange Commission filed its opening brief appeal to challenge the July 13, 2023 ruling by New York Judge Analisa Torres.
The SEC’s opening brief presented its arguments regarding the case. In the document, the commission continued to accuse Ripple Labs, Christian Larsen, and Brad Garlinghouse of offering and selling over $2 billion in XRP as investment contracts.
SEC Challenges Analisa Torres Ruling
The SEC argued that the district court’s conclusion that profits can’t be expected unless investors knowingly buy from the issuer is “contrary to both applicable law and the undisputed facts.”
They cited Ripple’s extensive marketing campaign about boosting XRP’s price, affecting both institutional and retail investors, which they argue was ignored. The SEC insists that the court’s ruling conflicts with fundamental securities laws and creates an unsustainable contradiction between investor expectations.
Legal Standpoint on Summary Judgment
The Commission claims that the District Court’s view that investors can’t expect from an issuer such as Ripple, unless they directly buy from the company, or a related acquaintance is “contrary to both applicable law and the undisputed facts.”
They argue this stance contradicts the Howey Test, the test used to determine whether an asset is a security or not. Also, the SEC claims it conflicts with federal securities laws prohibiting unregistered securities sales, directly or indirectly.
The SEC criticizes the court for distinguishing institutional investors from retail ones, noting Ripple’s extensive marketing aimed at boosting XRP’s price.
Ripple Execs React
Two of the most well-known figures related to Ripple Labs went on Twitter to react to the most recent developments regarding the ongoing Ripple-vs-SEC lawsuit.
Stuart Alderoty, Ripple’s Chief Legal Officer, went on Twitter to blast the SEC’s opening brief—claiming the case will likely be abandoned by the next SEC Chair taking office on January 20th.
“As expected, the SEC’s appeal brief is a rehash of already failed arguments –and likely to be abandoned by the next administration,” Alderoty said. “We’ll respond formally in due time. For now, know this: the SEC’s lawsuit is just noise. A new era of pro-innovation regulation is coming, and Ripple is thriving.”
A few moments later, Ripple Labs’ CEO Brad Garlinghouse also weighed in on the most recent development. He compared the appeal to the classic definition of insanity, stating, “One definition of insanity is doing the same thing over and over and expecting different results. Gensler’s SEC really took this to heart.”
XRP Pumped 14% Despite SEC Opening Brief
The market reacted extremely favorably to the news, with XRP continuing its ascension to potentially reaching new highs this month.
Over the day the currency gained a whopping 14% in value—reaching upwards of $3.07 for the first time in nearly a decade.
For Ripple investors, it seems like they will have a busy end of the month, with promises that the Trump inauguration and a new head at the SEC could completely pave the way for XRP’s ATH. If you’re interested in price predictions, check out our daily XRP predictions by Florian Biaggio.
The information provided in this article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Any actions you take based on the information provided are solely at your own risk. We are not responsible for any financial losses, damages, or consequences resulting from your use of this content. Always conduct your own research and consult a qualified financial advisor before making any investment decisions. Read more
