The much-discussed crypto process between US securities regulator SEC and Ripple is coming to an end after a two-year battle.
On December 2, the SEC and Ripple filed redacted responses to each other’s appeals against the summary judgment motions.
Ripple argues in its filing that the SEC failed to prove that its offering of XRP (XRP) between 2013 and 2020 was an offer or sale of an “investment contract” and therefore a security under US law.
Ripple concluded in the filing that “the court should grant defendant’s motion and deny the SEC’s motion.”
Ripple’s General Counsel, Stuart Alderoty, tweeted on Dec. 3 that this was Ripple’s “final filing” and asked the court to rule in its favor.
He also said that Ripple is proud of the defense it presented “on behalf of the entire crypto industry.” He also said that Ripple has “always been honest with the court”. He slapped the SEC that “you can’t say the same about our opponent.”
In another Twitter post, Alderoty again slammed the SEC, calling it “an adversarial regulator.” He cited two statements which, in his view, were inconsistent. One said the agency said the Howey test is a clear test for determining what constitutes an investment contract. Second, the SEC said of Hinman’s speech that it cited 13 of many other factors that market participants might consider.
Follow the bouncing regulator.
“Howey provides a clearly expressed test for determining what constitutes an investment contract.” SEC 04/22/21
“Hinman’s speech provided thirteen expressly non-exhaustive factors that market participants might consider.” 12/02/22
— Stuart Alderoty (@s_alderoty) December 4, 2022
The litigation between the SEC and Ripple began in December 2020, when the SEC filed a lawsuit against Ripple, alleging that Ripple raised $1.3 billion by offering its proprietary cryptocurrency XRP but did not registered as warranty.
In a November 30 Twitter thread, former federal prosecutor James Filan said there were only three questions left in the SEC case against Ripple. to clean.
This includes motions for summary judgment, expert challenges, and resolving issues related to “expert reports,” Hinman documents, and other documents that the SEC and Ripple cite in their filings.
The Hinman documents are a transcript of William Hinman’s speech at the Yahoo Finance All Markets Summit in June 2018, in which he stated that ether (ETH) is not a security.
Filan believes Judge Torres will not deal with the three big issues “separately,” but will rule them all together. After deciding the summary judgment motions, “a major written decision” will be released, likely “no later than March 31, 2023.”