Ripple Scores Small Victory in Ongoing SEC Trial
KEY POINTS
- Ripple has seen success as a cryptocurrency exchange and trade solutions platform run on its native token, XRP.
- December 2020 marked the beginning of the lawsuit that has been going on ever since, where the SEC charged Ripple for violation of security violations.
- The court has denied the SEC's request to seal in its entirety the amicus request to participate in the Daubert hearing.
In the back and forth with the SEC vs. Ripple lawsuit that has been going on since 2020, Ripple has scored a small win.
The Ripple effect
Ripple is a U.S.-based cryptocurrency solutions grid, with a gross settlement system, currency exchange, and remittance network. Ripple was created by the technology company Ripple Labs Inc. What may be more well known than Ripple, is its native cryptocurrency, XRP, which is consistently ranked in the top 10 cryptocurrencies by market capitalization. Essentially, Ripple is a payment settlement system alongside a cryptocurrency exchange that can process transactions made on its platform worldwide.
Pat White, CEO of Bitwave, describes it this way, "Ripple was designed from the very beginning to essentially be a replacement for SWIFT (a leading money transfer network) or to otherwise replace the settlement layer between major financial institutions." It works to cut out the middleman by being the middleman and ensures that exchanges of cryptocurrencies are executed properly. And for this assurance, a small amount of XRP is deducted as a fee.
SEC vs. Ripple
Ripple and XRP saw huge gains and successes, but in December 2020, it was accused by the SEC of violating security regulations. A back and forth battle has been happening ever since as the company claims the SEC did not notify Ripple of its token's status as a security. And indeed, it denies XRP being one.
Earlier this year, the tide seems to have turned in Ripple's favor as it seems the SEC did not give Ripple enough notice of XRP being considered a security and therefore under the SEC regulations.
Ripple's latest win
And now, defense attorney James K. Filan claims that Ripple has scored a win in the ongoing lawsuit. The court has denied the SEC's request to seal in entirety the amicus request to participate in the Daubert hearing.
Finan posted on Twitter, "The Court denies the SEC's Motion to Seal and orders it to file by June 14, a redacted version of the brief and exhibits, under seal, redacting information only to the extent necessary to safeguard information sought to be filed under seal." He then went on to say, "The Court also orders that by June 14, 2022, the SEC shall file a letter explaining its proposed redactions and specifying which exhibits it seeks to seal." So we see the court taking Ripple's view that the SEC was trying to seal more than what was needed.
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Katie Clinebell is a freelance content creator and digital marketing strategist for FinTech, blockchain, and crypto brands. She has created award-winning campaigns for Snapple and Tai Pei Frozen Asian Food and received an Adobe Academic Achievement Award for content about Olympic athletes.