SEC Commissioners drop bombshell that could save Ripple from lawsuit over sale of XRP

Rick Steves

“Although the commission has provided some guidance, the large number of factors cut against the clarity the guidance was intended to offer.”

new york

It turns out that two of the five SEC Commissioners acknowledge today that the regulatory status of digital assets remains so characterized by a “decided lack of clarity”, said Brad Garlinghouse and Chris Larsen’s counsel in a letter to the court.

The document refers to SEC Commissioners Hester Peirce and Elad L. Roisman, who publicly stated that “the only certainty we see is that people have questions about how to comply with the applicable laws and regulations”.

The individual defendants will be using the Commissioners Peirce and Roisman’s statements regarding Coinschedule as part of their motion to dismiss the lawsuit against them.

The authoritative voices of both Commissioners are likely to weaken the SEC’s position before the court. Other key quotes from their statement include:

  • “Although the commission has provided some guidance, the large number of factors cut against the clarity the guidance was intended to offer.”
  • “People can study the specific cases but “applying those clues to the facts of a completely different token offering does not necessarily produce clear answers.”
  • “[P]roviding clear regulatory guideposts and then bringing enforcement actions against people who ignore them is a better approach than the clue-by-enforcement approach that we have embraced to date and that today’s settlement embodies.”

According to the individual defendants’ counsel, Matthew Solomon, the statement confirms that charging Garlinghouse and Larsen with an offense that requires knowledge or recklessness was and is legally untenable.

https://financefeeds.com/gift-heavens-expert-comments-latest-bombshell-sec-v-ripple/

This supplemental authority was filed on behalf of the individuals who filed to dismiss the lawsuit, not for Ripple, but the latter will surely ask the court to take “Judicial Notice” of the letter.

Ripple’s fourth affirmative defense is that the Securities and Exchange Commission failed to provide fair notice that its conduct was in violation of the law.

SEC Commissioners Hester Peirce and Elad L. Roisman have offered quite a treat to the Defendants as the case is widely watched by the fintech and trading industry in the United States and elsewhere.

Also ahead in the SEC v. Ripple case is the deposition of William Hinman, July 27. Despite the probable stream of objections claiming privilege, there are expectations that the ex-SEC Director will help clarify what happened during the time of his speech in 2018 when he said Ether is not a security.

 

 

Read this next

Digital Assets

Point72 invests $77.5 million in Bitcoin, Morgan Stanley holds $269.9 million

Point72, the $34 billion hedge fund owned by billionaire and New York Mets owner Steven Cohen, held $77.5 million in the Fidelity Wise Origin Bitcoin Fund (FBTC) at the end of the first quarter, according to a recent filing.

Digital Assets

Binance claims Nigerian officials sought $150 million bribe

A Nigerian court has ruled that Tigran Gambaryan, a Binance executive detained on charges of tax evasion and money laundering, can stand trial on behalf of the world’s largest cryptocurrency exchange.

Digital Assets

Kraken reviews Tether listing in Europe ahead of MiCA adoption

Cryptocurrency exchange Kraken is “actively reviewing” whether to delist the stablecoin Tether (USDT) from its European platform, according to a report by Bloomberg.

blockdag

Discover How MoonBag Coin Presale Stacks Up Against Dogecoin & Litecoin

Discover how the MoonBag Coin presale compares to Dogecoin and Litecoin, with unique features, a robust presale structure, and new opportunities in 2024.

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary: Federal Reserve Policy, USD, May 17 ,2024

Overall, both the Federal Reserve’s policy and the US dollar’s outlook are shrouded in some degree of uncertainty.

Market News, Tech and Fundamental, Technical Analysis

Ethereum Technical Analysis Report 17 May, 2024

Ethereum cryptocurrency can be expected to rise further toward the next resistance level 3200.00, which is the top of the previous impulse wave i.

Digital Assets

Hong Kong adopts digital yuan payments through Chinese banks

Hong Kong has launched a pilot program enabling digital yuan payments through major Chinese banks, marking the first instance of China’s digital currency project being deployed outside the mainland.

Retail FX

Saxo Bank increases client assets five-fold to $116 billion

Copenhagen-based broker Saxo Bank has achieved a major milestone, surpassing $116 billion (DKK 800 billion) in client assets.

Inside View

ISDA says US Basel III “endgame” to heighten market risk capital

ISDA further explained that, by requiring banks to hold additional capital that is misaligned with levels of risk, the proposal would significantly reduce capital market access for US end users and businesses, restrict the ability of businesses to hedge exposures to changes in commodity prices, and increase the cost of everyday consumer goods, including food and gasoline.

<