Ripple Gathers More Support in Its Case Against the SEC
- The SEC filed a lawsuit against Ripple in 2020 for selling unregistered securities.
- Ripple has received support from about 12 investors, exchanges, and organizations.
- Crypto users believe this dispute will decide future crypto regulations and the SEC’s involvement in the industry.
Ripple’s legal dispute with the SEC seems to be swinging in its favor as more groups have shown support for the blockchain platform. In a recent tweet he posted, Ripple CEO Brad Garlinghouse happily noted that about 12 developers, companies, investors, and exchanges have officially offered support to the payment company.
Several of these individuals and groups have filed amicus briefs, which are legal documents filed in an appeal case to provide a court with extra relevant details. Brad claimed that the briefs, in their own ways, explained “the irreparable harm the SEC will do to every facet of the US crypto economy if it gets its way.”
The SEC submitted a motion on November 3 to extend the deadline for filing all reply briefs until November 30. It requested that any new amicus papers be submitted by November 11. However, Ripple’s representatives have accused the agency of devising a delay strategy through its request. A representative was quoted as saying,
This is yet another transparent attempt to further delay the resolution of this case and the court should reject it.
According to Ripple’s defense attorney James K. Filan, the most recent amicus brief was submitted by Cryptillian Payment Systems on November 3. Additionally, Veri DAO added its voice to the list of organizations that support Ripple by filing its own amicus brief early this month.
Others on the list include John Deaton on behalf of XRP investors, Coinbase, Valhil Capital, the Investor Choice Advocates Network (ICAN), the Chamber of Digital Commerce, the Crypto Council for Innovation, the Blockchain Association, I-Remit, Spend The Bits, and Tapjets.
The SEC brought legal action against Ripple Labs in 2020, accusing its executives Brad Garlinghouse and Chris Larsen of raising $1.3 billion in unregistered securities offerings by selling its XRP token.
The SEC claimed that XRP is not a cryptocurrency but rather a security, is subject to securities regulations, and falls within its jurisdiction. Crypto users believe Ripple’s dispute with the SEC will hugely affect the industry and set the mood for future regulations in the United States and other countries. It will also establish if a cryptocurrency is a security.