- Both parties are extremely confident in the evidence presented so far.
- However, Brad Garlinghouse, Ripple CEO believes that the SEC has run out of answers to prove its point.
A recent report has indicated that Brad Garlinghouse, the CEO of Ripple Labs is confident of a win in the two-year-long case between his company and the US Securities and Exchange Commission. In the latest development, both parties have filed separate motions calling for a summary judgment from the U.S. District Court Southern District of New York. Both Ripple and SEC believe that Judge Analisa Torres has enough evidence at hand to make a ruling as to whether Ripple violated the regulator’s laws by selling XRP.
Both parties are extremely confident in the evidence presented so far. However, Garlinghouse believes that the SEC has run out of answers to justify its action. According to Garlinghouse, SEC has shown in its recent filing that it is not interested in applying the law and has made an impermissible effort to operate outside the jurisdiction granted by Congress.
According to Ripple general counsel Stuart Alderoty, SEC has failed to “satisfy a single prong of the Supreme Court Howey test,” and point out “any contract for investment” in the two-year legal battle.
In the summary judgment filing, Ripple stated that SEC’s case “boils down to an impermissibly open-ended assertion of jurisdiction over any transfer of an asset.” It also mentioned that the regulators could not prove that the token holders could not “reasonably expect profits” since there was no contractual obligation between Ripple and the XRP holders.
XRP community waiting for good news
This was explained in the SEC’s motion for summary judgment that there can be an investment contract without the contract, “any rights granted to the purchaser, and without any obligations to the issuer.” In a counter-argument, Ripple stated that this is far from the interpretation of the law.
That is not and should not be the law, because without these essential features there is nothing to which the Howey test can sensibly be applied.
According to Ripple, profits come from the invisible forces of demand and supply. This was conceded by the SEC as claimed by the Ripple motion.
The case dates back to December 2020 when Ripple executives Christian Larsen and Brad Garlinghouse were charged for allegedly obtaining $1.3 billion from the sales of unregistered securities. The SEC has argued all along that XRP is not a cryptocurrency, but falls within the securities category.
As the case draws closer to an end with both parties calling for a summary judgment, the XRP community has seen positive sentiment in the last few days.
One user tweeted:
The end is near….Better make sure those bags are packed!!!
XRP price surged to $0.40 following the news but has currently taken a nosedive to trade at a current price of $0.35.
It is expected that the price could hit a new high when the ruling favors Ripple as exchanges are waiting to make decisions on relisting the asset.