Ripple has obtained access to core SEC documents, in which the department conveys its views on the nature and supervision of crypto assets. Ripple still aims to prove XRP does not represent a security.
In December 2020, the US Securities and Exchange Commission organized a lawsuit against Ripple and its creators, charging them of a $1.3 billion selling of unregistered securities dating back from 2013. Ripple has refuted the agency’s allegations, urging the Commission to explain the regulation of cryptocurrencies in detail. In the lawsuit with the SEC, Ripple asked that the regulator offer arguments why are Bitcoin and Ether not deemed securities, but XRP is categorized as such.
Ripple has organized a petition with the court insisting to review the SEC memorandums, in which the regulator articulates its views on digital assets and makes clear in which cases they could be regarded as securities. Hence, Ripple wants to find a “clue” that BTC, ETH, and XRP have resemblances with each other, as a result of which the Ripple cryptocurrency will also stop being considered a security. Judge Sarah Netburn practicing in the Southern District of New York thought that the SEC resources could indeed include such information, and largely satisfied Ripple’s allege. The firm will gain entry to SEC documents for interior use, but the communication of SEC employees will stay sealed.
In the word of Ripple lawyer Mathew Solomon, if it is established that the SEC dubbed XRP a currency rather than a security, the legal process could end as XRP would go outside the regulator’s authority. These details can drastically affect the result of the case. At some point, this argument could be used as an unofficial guide by other cryptocurrency start-ups.
Judge Netburn a short time ago stated XRP bears more similarity to fiat currencies rather than securities. Thus, Ripple has the confidence that the case will conclude in its favour.
We remind that another petition put forward by the Ripple legal team was denied by the SEC.
