An Intensifying Battle: Ripple Labs vs. SEC on XRP Lawsuit
The ongoing conflict between Ripple Labs and the SEC centered on the XRP lawsuit intensified on Wednesday, with Ripple’s Chief Legal Officer Stuart Alderoty accusing the SEC of failing to provide clear guidelines for crypto regulation.
SEC Needs To Own Up To War On Crypto, Ripple Lawyer Says
Following remarks at the Practicing Law Institute condemning the, Alderoty alleged that Grewal’s statements failed to paint a clear picture of the regulatory atmosphere.
- Alderoty claims that the SEC lacks transparency and consistency in its approach to crypto regulation
- He argues that the SEC manipulates factors from the Howey test arbitrarily
- SEC fails to provide clear guidelines for market participants
Dir. Grewal says the crypto enforcement unit acts with integrity, but ignores the DebtBox sanctions for “gross abuse of power,” the Ripple Judge’s admonishment for lack of “faithful allegiance to the law,” and the “arbitrary and capricious” finding in the Grayscale case. https://t.co/rZnaumdBOd
— Stuart Alderoty (@s_alderoty) April 3, 2024
Established by the U.S. Supreme Court in 1946, The Howey test is a legal framework designed to adjudicate what offering constitutes an investment contract. This has been a crucial point of discussion in the crypto sector’s regulatory landscape.
SEC And Ripple Face-Off On Crypto Regulation After XRP Lawsuit
Alderoty criticized Grewal’s stance on the SEC’s litigations against Ripple, especially concerning the XRP token.
- Grewal highlighted the SEC’s prosecution of Ripple over XRP and its implications
- Ripple contested the SEC’s claims of offering unregistered securities
- The SEC faced setbacks and refutations in the XRP case
The SEC initiated the lawsuit against Ripple in late 2020, alleging violations of securities laws due to unregistered offerings. However, Ripple secured a partial victory when it disproved the SEC’s claims.
Despite the mixed outcomes, Ripple and the SEC are set for a trial to determine the XRP’s security classification later this month.
Hot Take: Responses and Retorts in the Ripple-SEC Saga
The ongoing saga between Ripple Labs and the SEC continues, with accusations and retorts flying back and forth regarding the XRP lawsuit. Stay tuned for more updates on this high-stakes legal battle.
Sources:
– SEC Speech by Gurbir Grewal
– SEC – Investment Contract Analysis
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