The legal battle between Ripple and the US Securities and Exchange Commission (SEC) is nearing its end. It won’t be long before the judge on duty, Analisa Torres, gives her verdict on the case. Meanwhile, journalist Charles Gasparino wonders why the SEC is focusing on Ripple and the XRP token, when there is a much bigger whale to deal with with FTX.
The autopsy of the @SECGov v @Ripple case is a work in progress, obviously, but amid the @SBF_FTX debacle it’s worth asking why the @SECGov did focus on #XRP/Ripple. (1/2) The answer, based on my reporting, comes down to the SEC believing Ripple management was flouting
— Charles Gasparino (@CGasparino) January 4, 2023
2 reasons why SEC is suing Ripple
According to Gasparino’s analysis, there are two reasons for the SEC’s remarkable choice. The first is that the SEC is convinced that Ripple’s management was mocking the financial laws and regulations in the United States. The company sold the XRP token, while it was clear in advance that they were not doing everything by the book.
Furthermore, the SEC feels offended by Ripple because it continued to sell the XRP token, even after the regulatory body asked the company to stop doing so. In the case of Ethereum (ETH), it was one sale period and then it was done. Ripple continued to sell the token over a long period of time.
Even if true, this only shows that the SEC’s unelected bureaucrats believe they have unchecked power to issue indiscriminate closed door edicts under pain of punishment to those who don’t blindly obey. We have crossed from regulation by enforcement to hubris most foul. https://t.co/eT5tStXM6E
— Stuart Alderoty (@s_alderoty) January 4, 2023
Ripple’s legal expert Stuart Alderoty couldn’t resist commenting on Gasparino’s story. According to Alderoty, the SEC is a collection of non-democratically elected bureaucrats who abuse their power. “They can exercise their power unchecked and punish people who don’t blindly follow their orders,” Alderoty said.
New information in XRP lawsuit
Meanwhile, the lawsuit between the SEC and Ripple Labs continues. On January 4, the court received a number of requests, including from a stock exchange platform that would like its name to be crossed out in the documents. In this way, the exchange platform in question hopes to clear its own name and to remain unaffected in this lawsuit.
#XRPCommunity #SECGov v. #Ripple #XRP A Cryptocurrency Exchange Declarant files a Motion to Seal portions of the Parties’ Summary Judgment Materials to redact references identifying or providing contact information for the Exchange or its employees.https://t.co/srsm4Nhd5E
— James K. Filan 🇺🇸🇮🇪 126k (beware of imposters) (@FilanLaw) January 5, 2023
It is currently unknown which crypto exchange is involved, but there is more information in the above post from James Filan. Incidentally, the exchange platform is not the only one that wants its name removed from the documents. Several partners and investors of Ripple ask the judge the same.
The deadline for all documents is currently January 18. By that date, Ripple and the SEC must submit all rebuttals to the motions now on the table. It won’t be long before this case finally comes to an end.
