Ripple is a black sheep among cryptocurrencies
On December 22, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs for allegedly unregistered sales of securities. The case has long been on the crypto industry's agenda, and the development is of great concern to investors, blockchain24 writes.
"In a joint letter to the judge, Ripple has very serious claims about the SEC's complaint. Ripple has asked the court for the following: to grant summary judgment before taking the case to a jury. In fact, the court probably won't rule on Monday because there are two points in the letter to the judge that should be further clarified," said Tuncay Yildiran of Turkish cryptocurrency exchange ICRYPEX.
He said the SEC is trying to access information from 2013 that the regulator believes should prove that XRP is an unregistered security, but that Ripple is not turning it over for privacy reasons. The court may clarify the issue on Monday.
As another request in the joint letter, the SEC wants to increase its legal right to take not 10 readings, as they are allowed now, but 15. This is also one of the problems that Ripple objects to.
"In a joint letter, the parties decided to provide all evidence and documents in their possession by August 16, 2021. Nothing will actually change on Monday," the expert believes.
Recall that in January, Japan's securities regulator recognized XRP tokens as a cryptocurrency. It is worth noting that Ripple has very strong support from the Japanese community.
The financial holding company Nomura and the financial conglomerate SBI Holdings, which has a longstanding relationship with Brad Garlinghouse's company, are not going to give up XRP.
Earlier, Garlinghouse named Japan as one of the possible countries for Ripple to move to. According to the company's CEO, regulatory uncertainty could force Ripple to leave the U.S.
"In theory, the XRP token could grow tenfold if it were taken into the global banking system for which it was created. For now, news of lawsuits and token sales by management has a stronger impact on the outlook than the technical benefits of the project, which are increasingly rare to hear about," notes FxPro's analyst team.