Ripple’s string of wins analyzed, XRP lawsuit to drag on until Spring 2022

Rick Steves

“Absent a settlement, this case will not be decided until March 2022 at the earliest and possibly not even until late spring if the court decides not to rule on some of the pending motions until after the discovery deadline, which looks really possible”.

Thien-Vu Hogan has provided some key insights into the SEC v. Ripple lawsuit after Judge Netburn ordered the SEC to address many unanswered questions.

Although the Judge dubbed most of Ripple’s requests for admission as “theater”, she did find many of the defendants’ RFAs and interrogatories relevant to the case.

This was a clear win for Ripple as the SEC’s case is increasingly viewed as circumstantial. “The SEC is gonna be forced to argue that Ripple marketed to retail purchasers as though there was an investment contract”.

“It’s a circumstantial case, but the SEC didn’t want to come out and say that, so Judge Netburn is forcing the SEC’s hand”, said Ms. Hogan in a video.

With that being said, the SEC being forced to address all XRP sales contracts, the SEC is now in a tough position.

“It either has to admit there is nothing in writing that forms an investment contract and therefore admit that the case is circumstancial; or it can go through each and every contract and try and find something in the contract that somehow ties Ripple to people who bought XRP on Coinbase last year”.

The legal expert’s instinct is that the plaintiff is that the SEC won’t go down that road and will concede it is bringing a marketing case. But, much much like in a murder case with no hard evidence such as fingerprints or eye witnesses, “you can win that case, but it isn’t the easieast way to win.”

The Hidden Gem

The Hogan team also discussed the hidden gem found by Ripple’s counsel team, who pointed that the SEC website says whether a blockchain is fully funcional is relevant to the Howie analysis.

That is something the SEC has been trying to deny this entire litigation as the agency has even bent over backwards to say Hinman’s 2018 speech on Ethereum not being a security is not an official SEC position.

“Larsen moves to compel the SEC to contend whether “the XRP Ledger was not fully functional before the start of the ongoing securities offering alleged in the Complaint […] Defendants counter that the SEC’s own public-facing website states that whether a digital asset “is not fully functional at the time of the offer or sale” is relevant in a Howey analysis. The Court
agrees that this interrogatory seeks relevant information”, the judge wrote.

The court ordered the parties to meet and confer the definition of “fully functional” to facilitate resolution of this dispute and ordered the SEC to answer Chris Larsen interrogatory.

The court ruling proves that the Judge thinks that it relevant, no matter what the SEC says and it is going to take that into account. “That is good news, really good news”, Ms. Hogan concluded.

SEC v. Ripple won’t be decided until March 2022 at the earliest

As to the two month discovery extension to January 2022, the attorney stated that is “can only hurt Ripple” and that this court moves at its own pace, much slower than most courts, “where motions to strike affirmative defenses or to dismiss complaints are dealt with right away so the parties know what the pleadings are going into discovery”.

So, the bad news for XRP investors is that “absent a settlement, this case will not be decided until March 2022 at the earliest and possibly not even until late spring if the court decides not to rule on some of the pending motions until after the discovery deadline, which looks really possible”.

Read this next

Digital Assets

Russian Duma’s working group to address gaps in crypto regulation

A working group formed by the Russian State Duma to tackle the issues of cryptocurrency regulations is set to hold its first meetings, said the head of the parliamentary Financial Market Committee, Anatoly Aksakov.

Digital Assets

Kevin O’Leary says XRP lawsuit is “a very bad idea”

“I have zero interest in investing in litigation against the SEC, that is a very bad idea”.

Industry News

SFC freezes 17 client accounts on suspected ‘pump-and-dump’ scam

Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), has issued notices to two local brokers, instructing them to freeze certain client accounts suspected of market manipulation.

Retail FX

FSCS starts to offer LCF investors compensation under government scheme

The Financial Services Compensation Scheme (FSCS) has gone live with the government’s redress scheme to reimburse eligible London Capital & Finance victims.

Industry News

Aquis Exchange appoints Glenn Collinson as new Chair

Aquis Exchange, a group of companies that provide services for exchanges, has announced the appointment of Glenn Collinson as its new Chair and he would succeed Niki Beattie effective from January 1, 2022.

Digital Assets

Bitpanda onboards Lydia’s 5.5 million users to white label solution

Lydia has deployed the white label solution, with transactions made by the more than 5 million Lydia customers in a wide range of assets, from crypto to fractional stocks, being executed via Bitpanda for as little as EUR 1.

Digital Assets

Archax deploys Scila AB’s AML and surveillance tech for crypto trading

Scila is very much in tune with digital assets and cryptocurrencies and has some of the largest cryptocurrency exchanges and traders in its client roster.

Institutional FX, Retail FX

ATFX goes all in on US equities: FX broker adds 113 US stock CFDs

With the addition of 113 US stock CFDs, ATFX boasts more than  300 tradable instruments, 273 of which are stock CFD products.

Industry News

Citadel CEO outbids 17,000 crypto investors after winning Short Squeeze Lawsuit

Citadel Securities has been a key source of trading platforms’ revenue, which fed conspiracy theories that the US market maker leaned on their executives to end the short squeeze by restricting users from buying meme stocks.