The prominent ongoing case being fought between Ripple and the Securities Exchange Commission is only beginning to get more complicated over time. Ripple is currently expressing its displeasure with several related issues. Through a tweet, the lawyer, who happens to be representing Ripple, John Deaton, brought up the issue of the XRP not being a security.
He asserted in his statement that the SEC believes everyone who purchases XRP in Japan is associated with a common business venture with Ripple and all other XRP holders. The token’s status as security is also taken into consideration. He clarified the situation by pointing out that not even the Japanese regulator, the Financial Services Agency, views XRP as a security. Deaton continues by pointing out that there likely wouldn’t have even been a lawsuit filed in the first place if the SEC had been monitoring the sales of Ripple.
Another matter of significance is the fact that Deaton had earlier mentioned that the only aspect worth pursuing against Ripple where the SEC is concerned is the entity’s having indulged in the selling of XRP during the period of 2013 to 2017. However, it so happens that the SEC is up against Ripple for selling unregistered securities as XRP tokens. Stuart Alderoty, the chief legal officer of Ripple, believes that the SEC may be going beyond its legal authority in this matter and that the agency has no business doing so.
In the meantime, the entire connected crypto community is waiting in anticipation of the ultimate verdict. The unsealing of some particular documents also surfacing, for which Roslyn Layton, who happens to be a senior contributor to Forbes, has filed a motion in order to obtain the Hinman speech documents.
The Hinman speech, which was made by the ex-director of the SEC’s Division of Corporation Finance in June of 2018, happens to be an extremely relevant document where the Ripple case is concerned. It supposedly has the regulator’s reflection on the ways in which cryptocurrencies happen to be listed as securities. The legal team behind Ripple has been trying to make their move to be able to obtain the documents. This very legal tussle is in its third year, with all connected investors patiently waiting for the ultimate outcome.