The U.S. Securities and Exchange Commission (SEC) attempted to prevent two Ripple Labs (XRP)-friendly firms from submitting amicus briefs in the SEC v. Ripple case, prompting the payment protocol network to denounce the agency.
Amicus curiae, literally “friend of the court”, is a legal term used to refer to someone, typically an expert, who is not a party to a case and offers information that bears on the case, but is not necessarily binding on the court.
The SEC requested that Federal Judge Analisa Torres reject TapJets Inc. and I-Remit Inc.’s requests for amicus support for Ripple’s motions for summary judgment- claiming that the proposed briefs were inappropriate attempts to submit evidence.
Both companies argued that XRP was necessary for their business models in their letter-motions. I-Remit, a Filipino remittance company, relies largely on Ripple’s on-demand liquidity solution while TapJets needs XRP to book charter flights quickly and at any time.
The SEC argued that the two Ripple-friendly firms should have been required to provide evidence as part of the Ripple Labs’ defense. Furthermore, the SEC stated that TapJets and I-Remit failed to explain how their use of XRP is linked to the outcome of the ongoing court case.
In filing their opposition to the Commission’s request, Ripple slammed the agency- writing that both companies are independent third parties who are not related to the current lawsuit while also accusing the watchdog of “mischaracterizing” their proposed briefs.
Ripple also argued that the briefs in question could disprove the Commission’s talking points, which claim that every purchase of XRP is an investment.
The SEC’s lawsuit, Ripple stated, should not have been filed in the first place if the SEC isn’t able to assess the accuracy of such allegations.
#XRPCommunity #SECGov v. #Ripple #XRP Ripple slams the SEC and the SEC’s opposition to the I-Remit and TapJets motions to file amicus briefs. “If the SEC cannot evaluate the veracity of such claims then it had no business bringing this litigation in the first place.” pic.twitter.com/MBACAZL01N
— James K. Filan 🇺🇸🇮🇪 118k (beware of imposters) (@FilanLaw) October 5, 2022
The SEC has accused Ripple of conducting an illegal securities offering to the tune of $1.3 billion. They allege that Ripple sold unregistered securities in the form of XRP, which is the native token of the Ripple network.
Ripple has denied these allegations, arguing that XRP is not a security and that they did not conduct an illegal offering.
The case is currently ongoing, and a ruling is expected soon. In fact, both Ripple and the SEC filed their motions for summary judgment last month, bringing the case much closer to a conclusion. However, regardless of the outcome, this case will have major implications for the cryptocurrency industry as a whole.
If the SEC prevails, it could set a precedent that would make it much harder for other projects to raise funds through token sales. On the other hand, if Ripple wins, it could pave the way for other projects to do the same.
Either way, this case is sure to have a big impact on the future of cryptocurrency.
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