{"id":30320,"date":"2022-09-27T17:55:49","date_gmt":"2022-09-27T17:55:49","guid":{"rendered":"http:\/\/egrowonline.com\/?p=30320"},"modified":"2022-09-27T17:55:49","modified_gmt":"2022-09-27T17:55:49","slug":"coming-court-ruling-in-crypto-company-vs-sec-could-have-ripple-effect","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=30320","title":{"rendered":"Coming court ruling in crypto company vs SEC could have &#8220;Ripple&#8221; effect"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<p>To fight or not to fight<strong> <\/strong>the Securities and Exchange Commission \u2014 that enduring question for crypto companies should have a clearer answer following an almost two-year battle between the regulator and the company now called Ripple.<\/p>\n<p><strong>The big picture: <\/strong>The central question that could be answered by court ruling in a matter of months \u2014 one that has the entire crypto industry on the edge of its seat \u2014 is whether xrp, the coin that Ripple uses to enable international payments, should be considered a security.<\/p>\n<p><strong>Why it matters:<\/strong> The ruling on SEC vs Ripple Labs, some people think, could have <a target=\"_blank\" class=\"gtmContentClick\" data-vars-link-text=\"greater implications\" data-vars-click-url=\"https:\/\/www.wsj.com\/articles\/crypto-industry-hopes-looming-legal-brawl-will-thwart-secs-regulation-push-11643724002\" data-vars-content-id=\"5f8c3b9a-cf3a-45fa-8593-73650bb97a1b\" data-vars-headline=\"Coming court ruling in crypto company vs SEC could have &quot;Ripple&quot; effect\" data-vars-event-category=\"story\" data-vars-sub-category=\"story\" data-vars-item=\"in_content_link\" href=\"https:\/\/www.wsj.com\/articles\/crypto-industry-hopes-looming-legal-brawl-will-thwart-secs-regulation-push-11643724002\" rel=\"noopener\">greater implications<\/a> for other crypto firms and their native coins. <\/p>\n<ul>\n<li>In the event Ripple prevails, crypto firms would have a precedent-setting case to argue that theirs is not, and should not, be considered a security. (Er, Ripple Effect, anyone?)<\/li>\n<li>In the event the SEC prevails, Chair Gary Gensler gets a feather in his cap as crypto enforcer supreme in his years-long effort to put a trillion-dollar industry (just shy now) under his thumb. <\/li>\n<\/ul>\n<p><strong>What they&#8217;re saying:<\/strong> &#8220;Ripple is fighting this lawsuit on behalf of the entire crypto industry,&#8221; Stu Alderoty, general counsel at Ripple Labs, said in an emailed statement responding to queries.<\/p>\n<ul>\n<li>The SEC declined comment to Axios. <\/li>\n<\/ul>\n<p><strong>Context:<\/strong> The SEC in December 2020 brought a suit against the company, alleging that Ripple, its CEO Brad Garlinghouse, and co-founder Chris Larsen engaged in an illegal securities offering, during which they each personally sold xrp for hundreds of millions of dollars. <\/p>\n<ul>\n<li>Ripple disagrees that xrp is a security and has spent more than $100 million doing so, according to the company.<\/li>\n<\/ul>\n<p><strong>Of note<\/strong>: Ripple the company now makes a distinction between it and xrp \u2014probably to create separation from the firm and the coin in question \u2014 once called &#8220;ripples.&#8221; But that ticker symbol signals that history: Coins of a certain era sport &#8220;X&#8221; in front, thus &#8220;XRP&#8221; is to Ripple as &#8220;XTZ&#8221; is to Tezos.)<\/p>\n<p><strong>The latest:<\/strong> Both <a target=\"_blank\" class=\"gtmContentClick\" data-vars-link-text=\"Ripple\" data-vars-click-url=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.nysd.551082\/gov.uscourts.nysd.551082.642.0.pdf\" data-vars-content-id=\"5f8c3b9a-cf3a-45fa-8593-73650bb97a1b\" data-vars-headline=\"Coming court ruling in crypto company vs SEC could have &quot;Ripple&quot; effect\" data-vars-event-category=\"story\" data-vars-sub-category=\"story\" data-vars-item=\"in_content_link\" href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.nysd.551082\/gov.uscourts.nysd.551082.642.0.pdf\" rel=\"noopener\">Ripple<\/a> and the <a target=\"_blank\" class=\"gtmContentClick\" data-vars-link-text=\"SEC \" data-vars-click-url=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.nysd.551082\/gov.uscourts.nysd.551082.639.0.pdf\" data-vars-content-id=\"5f8c3b9a-cf3a-45fa-8593-73650bb97a1b\" data-vars-headline=\"Coming court ruling in crypto company vs SEC could have &quot;Ripple&quot; effect\" data-vars-event-category=\"story\" data-vars-sub-category=\"story\" data-vars-item=\"in_content_link\" href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.nysd.551082\/gov.uscourts.nysd.551082.639.0.pdf\" rel=\"noopener\">SEC <\/a>on Sept. 13 filed motions in New York requesting a summary judgment, saying the judge overseeing the case had enough information to make a ruling without moving the case forward to a trial.<\/p>\n<p><span id=\"midStoryAd\" data-ad-status=\"AD\" \/><\/p>\n<ul>\n<li>During a Mainnet fireside chat last week, CEO Garlinghouse said it would take as little as two months, or as long as six, to resolve what started in December 2020.<\/li>\n<li>Alderoty in a recent <a target=\"_blank\" class=\"gtmContentClick\" data-vars-link-text=\"interview\" data-vars-click-url=\"https:\/\/www.coindesk.com\/policy\/2022\/09\/21\/sec-wants-to-remake-the-law-rather-than-apply-it-says-ripple-general-counsel\/\" data-vars-content-id=\"5f8c3b9a-cf3a-45fa-8593-73650bb97a1b\" data-vars-headline=\"Coming court ruling in crypto company vs SEC could have &quot;Ripple&quot; effect\" data-vars-event-category=\"story\" data-vars-sub-category=\"story\" data-vars-item=\"in_content_link\" href=\"https:\/\/www.coindesk.com\/policy\/2022\/09\/21\/sec-wants-to-remake-the-law-rather-than-apply-it-says-ripple-general-counsel\/\" rel=\"noopener\">interview<\/a> said a settlement with the SEC would only be possible if the regulator said all xrp sales and secondary sales made by Ripple were not securities. <\/li>\n<\/ul>\n<p><strong>What they&#8217;re saying:<\/strong> &#8220;This case will reaffirm the legal limits of the SEC\u2019s jurisdiction to securities,&#8221; Alderoty said in an email to Axios. &#8220;The SEC does not have free roaming authority over crypto.&#8221;<\/p>\n<ul>\n<li>That&#8217;s something crypto industry insiders say a lot and wish were true \u2014 &#8216;you can&#8217;t touch this coin, because it&#8217;s not SEC domain.&#8217; <\/li>\n<\/ul>\n<p><strong>Yes, but:<\/strong> Not everyone agrees that the Ripple ruling will have the broad-reaching implications that many in the industry hope it will.<\/p>\n<ul>\n<li>&#8220;The question of whether something is a security is fact-specific, and there are important factual differences among coins,&#8221; Adam Levitin, professor of law at Georgetown University Law Center, wrote in a <a target=\"_blank\" class=\"gtmContentClick\" data-vars-link-text=\"tweet\" data-vars-click-url=\"https:\/\/twitter.com\/AdamLevitin\/status\/1573751196816478209?s=20&amp;t=uwvV_c4EYgTbMBtRYxzxPQ\" data-vars-content-id=\"5f8c3b9a-cf3a-45fa-8593-73650bb97a1b\" data-vars-headline=\"Coming court ruling in crypto company vs SEC could have &quot;Ripple&quot; effect\" data-vars-event-category=\"story\" data-vars-sub-category=\"story\" data-vars-item=\"in_content_link\" href=\"https:\/\/twitter.com\/AdamLevitin\/status\/1573751196816478209?s=20&amp;t=uwvV_c4EYgTbMBtRYxzxPQ\" rel=\"noopener\">tweet<\/a>.<\/li>\n<\/ul>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.axios.com\/2022\/09\/27\/crypto-sec-ripple-effect-court-ruling-securities\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>To fight or not to fight the Securities and Exchange Commission \u2014 that enduring question for crypto companies should have a clearer answer following an almost two-year battle between the regulator and the company now called Ripple. The big picture: The central question that could be answered by court ruling in a matter of months [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":30321,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[45],"tags":[135,20,3565,62,395,265,4223,605],"class_list":["post-30320","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ripple","tag-coming","tag-company","tag-court","tag-crypto","tag-effect","tag-ripple","tag-ruling","tag-sec"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2022\/09\/1664230872356.jpg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/30320","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=30320"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/30320\/revisions"}],"predecessor-version":[{"id":30322,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/30320\/revisions\/30322"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/30321"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=30320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=30320"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=30320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}