Ripple Execs Use Coinschedule Penalty as Defense

Ripple Execs Use Coinschedule Penalty as Defense

Key Takeaways

Ripple’s legal team has published a new filing that aims to show that there is regulatory uncertainty around securities.
Ripple cites the SEC’s comments on its recent regulatory actions against Coinschedule as evidence of this claim.
The filing is part of a motion to dismiss the SEC’s claims against Ripple executives Brad Garlinghouse and Chris Larsen.

Share this article

The legal team for Ripple has filed a new defense against the U.S. Securities and Exchange Commission (SEC). This filing aims to use recent SEC comments as evidence of regulatory uncertainty.

SEC May Have Expressed Regulatory Uncertainty

Last week, the SEC placed a $200,000 fine on Coinschedule and its parent company Blotics. Later, SEC Commissioners Hester Peirce and Elad Roisman commented on the outcome of the case.

In their comments, Peirce and Roisman made several statements that suggest uncertainty around securities regulations. Most notably, they stated that “The only certainty we see is that people have questions about how to comply with the applicable laws and regulations.”


The Commissioners also noted that the “large number of factors and absence of weighting cut against the clarity the guidance was intended to offer” and said that applying rules to a “completely different token offering does not necessarily produce clear answers.”

They also observed a “decided lack of clarity” around the applications of securities laws. Furthermore, they noted that the application of the Howey Test—a set of criteria that is used to determine whether assets are securities—“is not crystal clear.”

If Ripple’s legal team is correct, the SEC violated Section 17(b) of the Securities Act, which requires courts to take judicial notice of facts that are not subject to reasonable dispute and facts from sources that cannot be reasonably questioned.

A full list of relevant comments can be read in Ripple’s most recent court filing, shared on Twitter by lawyer James Filan today.

SEC Case Against Ripple Continues

The U.S. SEC first filed charges against Ripple in December 2020 when it claimed that Ripple’s ongoing sales of the XRP token constituted an unregistered securities offering.

The SEC also accused Ripple executives Brad Garlinghouse and Chris Larsen of aiding and abetting those sales. Today’s filing is part of the executives’ motion to dismiss the claim that they knowingly engaged in wrongdoing. The legal team defending the executives originally filed a motion to dismiss this claim in March.

Today’s filing seems to apply only to the two Ripple executives. It does not seem to concern Ripple as a company. The case is still ongoing and is predicted to end in early 2022.

Disclaimer: At the time of writing this author held less than $75 of Bitcoin, Ethereum, and altcoins and did not hold XRP.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

SEC Will Sue Ripple Over XRP’s Security Status

The U.S. Securities and Exchange Commission (SEC) is reportedly preparing to sue Ripple over its ongoing sales of the XRP token. CEO Says Ripple Will Fight Back On Twitter, Ripple…

Ripple Wants Former SEC Member to Testify In Case

The legal case between the U.S. Securities and Exchange Commission and Ripple has seen a new development, as Ripple aims to depose a former SEC member and hear their testimony….

Ripple Hires New Lawyer as Courts Discuss Fair Notice

Ripple saw two significant legal developments this week. It has added a new lawyer to its legal team, and it is contesting a key accusation from the U.S. Securities and…

How to Trade Using the Inverse Head and Shoulders Pattern

In stock or cryptocurrency trading, you may have heard of the term “inverse head and shoulders.” Also known as the “head and shoulders bottom” formation, the inverse head and shoulders chart pattern can…

Source link


Be the first to comment

Leave a Reply

Your email address will not be published.