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Monday, October 18, 2021

Ripple vs SEC lawsuit: What Ripple (XRP) plans to do

In the lawsuit between Ripple (XRP) and the Securities and Exchange Commission (SEC), nothing has been decided yet. On the contrary, anything can still happen. Indeed, August 31 is a very symbolic date. It marks the end of the grace period granted by the SEC for submitting withheld documents.

Who is right and who is wrong?

Ripple (XRP) had asked the courts to force the SEC to provide certain internal documents deemed important. However, the institution headed by Gary Gensle did not appear to want to exhibit these documents in public. She used the privilege of the deliberative process (DPP). This device is used by organizations to prevent the disclosure of certain documents or processes that led to the implementation of their policy. In the case of the Ripple (XRP) vs SEC lawsuit , it prevents the former from knowing the reasons for the decision of the latter.

Since the SEC visibly refuses to comply with Judge Sarah Netburn’s demands , all eyes are on her. Indeed, given the significant importance of this lawsuit for the cryptocurrency industry, the judge will have to go to the end and she could explore the possibility of pronouncing financial sanctions .

Having said that, we are still a long way from the sanctions stage. Currently, the court still needs to give the SEC a fair hearing to prove the reasons why it deserves protection by the DPP. For its part, Ripple (XRP) must demonstrate why the SEC does not deserve to benefit from this procedure.

Ripple Labs approaches

Following its August 27 statement , Ripple (XRP) wants to know if SEC members ever bought XRP or other digital assets before January 2018. Everything suggests that Matthew Solomon, a lawyer for Ripple , will ask staff of the institution to learn about its activities over the past six years in relation to investments in digital assets.

If, as a result of investigations, it turns out that the SEC has not put in place any restrictions on buying or trading digital currencies within the organization, Ripple could get ahead of the curve. the litigation. Indeed, it would prove that the organization was unorganized and did not have a predefined plan for the cryptocurrency industry before taking Ripple Labs to court.

Separately, Ripple will attempt to find out whether William Hinman, the former director of the SEC, in any way influenced the entity’s decision to accept or reject Bitcoin exchanges (BTC ) and Ethereum (ETH) among its employees in 2018.

The entire cryptocurrency industry is following the SEC versus Ripple (XRP) lawsuit very closely . For good reason, there are several other electronic currencies that have the same status as XRP. The outcome of the lawsuit will serve as case law and may disrupt their course, if XRP loses the lawsuit.

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