An occasional panellist with the FBN (Fox Business Network), Charles Gasparino, has weighed the current legal battle between Ripple Labs and the United States SEC as the deciding factor for crypto regulations in the United States.
This observation has been made regularly that the eventual ruling of the case will be the watershed moment for the whole crypto space. The Securities and Exchange Commission sued Ripple Labs back in December 2020 for issuing unregistered security, XRP.
However, the whole circumstances around the case appeared unclear from the beginning. Charles Gasparino mentioned that members of the Ripple community have claimed SEC is unfair because the same argument applied to Ethereum that came into the space the same way.
The comparison with Ripple is, however, unfounded as Ethereum had gotten a free pass from the SEC in2014 before having its initial coin offering, where it raised money for the development of the platform.
The XRP army claimed that the officials of the commission were benefiting from Ethereum, thus the main reason for the contest between the community and the regulatory agency. Charles Gasparino claimed he has all the documents where the allegations from the community are laid out. This became one of the reasons he felt external examiner like the Committee working on Crypto in Biden’s administration had to step in.
The journalist, however, recommends for the commission to pass laws that will address the uncertainties in other to hinder other innovative startups in the budding industry. Hester Pierce, the SEC Commissioner, has also recommended the same earlier.
Recent development in the case reveals that Chris Larson, Ripple co-founder, and CEO, has submitted a reply to the response of the commission on the motion they filed on the clarity of the Howey test application to sales over the last eight years. Attorney James K. Filan posted the filing on Twitter where it was argued that the response of the commission simply refuses to comply with the obligations the law laid on all parties. The motion also highlights other interrogatories that the SEC failed to respond to and further recommends to the court that they dismiss the case.
The Securities and Exchange Commission, however, claimed that Ripple is looking for those answers and documents they seek to defend itself and also question the credibility of the SEC and its staff.
The next hearing date for the lawsuit is September 20. Ripple will now have the opportunity to oppose the brief filed by the Commission on Sept. 28, and they are expected to reply with a motion to oppose the brief where they will oppose the SEC arguments in a motion with relevant comments.