According to a tweet from pro-Ripple attorney James K. Filan yesterday, Ripple has submitted a redacted response to the Securities and Exchange Commission’s opposition to its application for summary judgment.
Notably, it represents the blockchain payments company’s final submission in its legal dispute with the SEC. The only thing left to do is to wait for Judge Analisa Torres’ decision. Filan anticipates that this decision will be made by or before the end of March 2023, as was previously announced.
The SEC is alleged to have failed to demonstrate that the statutes of Howey’s test apply to Ripple’s sales of XRP from 2013 to 2020, according to the 56-page document (excluding the introductory sections) obtained by fxcryptonews. It says that the SEC is asking the court to redefine these statutes, noting that the SEC is responsible for doing so but has yet to do so thus far.
“The SEC’s position boils down to a view that any time someone buys an asset hoping to make money, and the seller’s interests are even partly aligned with the buyer’s, it is a security subject to registration,”After its opening statement, Ripple makes an assumption. “That is not the law, even if the seller uses the sales proceeds to run its business. If Congress wants to expand the securities laws that way, it can do so; but this Court should not.”
General Counsel for Ripple Stuart Alderoty responded to the statement, saying that unlike the SEC, Ripple has been honest with the court. The team is proud of the case it has crafted, the Ripple lawyer claims, not only to defend Ripple but also the entire cryptocurrency ecosystem.
While acknowledging that he has not yet seen the document, attorney John E. Deaton, who is representing thousands of XRP holders in the legal dispute as an amicus curiae, pointed out that Ripple lawyers acknowledged the XRP holders’ brief four times in the filing. He adds that the almost 3000 affidavits from XRP holders were quoted twice by the Ripple team.
It is important to note that the legal dispute between the regulator and the payments company has lasted almost two years and has hurt many XRP holders because the SEC claims the cryptocurrency is an unregistered security. Additionally, a number of experts think that if the court wins in favour of the regulator, the case will probably establish a precedent that might strengthen the SEC’s position in crypto regulations at the expense of the developing sector.