Ripple CLO Criticizes SEC Appeal as “Hypocritical Pivot”
Ripple’s Chief Legal Officer, Stuart Alderoty, has criticized the United States Securities and Exchange Commission (SEC) appeal as a hypocritical move. This comes after the SEC has long insisted that the rules are clear and must be obeyed. In its filing, the SEC stated that the Second Circuit needs to review the complex legal problems in applying the Howey Test.
SEC Files Response to Ripple
In its response to Ripple, the SEC discussed the legal problems and urged the court to certify its interlocutory appeal. The SEC argued that different courts within the same district have reached conflicting legal conclusions on the matter, and other courts are also deliberating on similar questions. The SEC believes that permitting the appeal and issuing a stay would benefit all parties involved by conserving resources. It also mentioned that the appeal could open the door for Ripple to seek a review regarding institutional sales.
Ripple Buys Fortress Trust
Despite the ongoing legal issues, Ripple has completed the acquisition of Web3 infrastructure startup Fortress Trust. This purchase allows Ripple to expand its regulatory licenses, including a Nevada Trust license. The company already holds a NY BitLicense, over 30 Money Transmitter Licenses across the US, and an in-principle Major Payment Institution License in Singapore.
Hot Take
The SEC’s appeal and Ripple’s acquisition of Fortress Trust are further developments in the ongoing legal battle. The SEC’s argument for a stay of proceedings has been criticized, with some stakeholders finding it laughable. The impact of these events on XRP’s price performance remains to be seen.
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