Initially, it seemed as if the US Securities and Exchange Commission had the upper hand in the legal dispute. In recent months, however, Ripple has secured a string of procedural victories. Following the reorganization, legal experts anticipate the next judgments will clarify the essence of XRP.
James K. Filan, an attorney for the ripple community, just announced on Twitter that the court has dismissed the US Securities and Exchange Commission’s (SEC) application to seal.
According to the tweet, the court agrees with Ripple’s assertion that the SEC was attempting to seal more than necessary and has ordered the SEC to file a letter detailing the specific exhibits it intends to seal and the rationale for the redactions ‘to the extent necessary to protect information sought to be filed under seal.’
Previous measures are done by the Ripple team
After the US SEC filed the lawsuit, Ripple Labs did not respond for more than five weeks. However, the legal team for the blockchain innovators, along with CEO Brad Garlinghouse, have been taking very synchronized steps to counter the SEC’s attack on the company’s integrity.
Since the case’s inception, Garlinghouse has been sure that Ripple is on the right side of the law and that the SEC is seeking to start a war with the whole cryptocurrency sector.
The presiding judge, Judge Sarah Netburn, has received numerous legal notes from Ripple’s team in the courtroom. Ripple has maintained, among other things, that they have always attempted to collaborate with the SEC to avoid regulatory violations, and that the US SEC has ‘deliberately misunderstood’ its RFAs.
The judgment in the 18-month-long lawsuit is critical for crypto advocates, legislators, and the blockchain sector as a whole. If the court rules in favor of the US SEC, Ripple Labs’ native currency, XRP, would be deemed a security, setting a stormy precedent for the crypto-world.
In the end, it might kick off a chain reaction of lawsuits launched against comparable crypto businesses for failing to classify their particular crypto assets as securities.
Notably, the liquidity of XRP in the United States dried up after numerous cryptocurrency exchanges were forced to remove it from their platforms. However, Ripple CEO Brad Garlinghouse observed that the company’s extraordinary development is occurring outside of the United States. Specifically, 95% of Ripple’s customers are non-American payment providers. A victory for Ripple would be excellent news for cryptocurrencies that have been battling uncertainty.
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