During the weekend, the Securities and Exchange Commission (SEC) filed a Memorandum opposing Ripple defendants’ motion. The aim was to get a summary judgment in the ongoing lawsuit.
Two days ago on Twitter, a Ripple enthusiast whose username is “bill” shared his views on SEC’s counterarguments against the Ripple defendants’ motion. User bill on Twitter believes that SEC had not raised a strong argument in response to Ripple.
He considers that SEC would have been in a better position if it targeted Ripples’s sales or offers of XRP in particular. But, in his words, “I got the chance to examine SEC’s reply to Ripple’s arguments properly, and I must say it needs certain ‘essential ingredients.’
The Good News Amidst The Ripple Lawsuit
In his Twitter thread, bill went further to criticize SEC for running a general case against all XRP offers or sales for eight years, including the secondary markets. Bill, who seems to be a legal expert, points out some signs of weakness in the SEC’s legal case against Ripple that he noticed.
He believes there are signs of weaknesses as SEC legal arguments mischaracterize Ripple’s attempt to misconstrue “investment contract” regarding the pre-1933 blue sky law cases. However, he points out two vital points that SEC may also have. Firstly, Ripple may be naive in enclosing the word’ scheme.’
Many people replied to bill’s Tweets, but a specific comment stood out. This comment came from John Deaton — CryproLaw founder, who said: “the good news for Ripple in this lawsuit is that the SEC did not offer any specific sales with contracts.” Furthermore, he said, “they didn’t refer to any particular transaction, just all transactions. So I don’t see how these sticks.”
Additionally, Ripple argues that “transaction or scheme” tells that a court should have a deeper look into the context in which the instrument is grounded. However, the SEC claims that Ripple hasn’t cited any case that holds this true.
In addition, the SEC claims that Section 5 of the Securities Act forbids sales or offers of unregistered assets. At the same time, on October 24, the two parties involved in the case were meant to have filed publicly redacted versions of their opposition briefs.
Earlier, John Deaton disclosed that 440 exhibits would be public on October 24. While on November 21, both parties will file a publicly redacted version of the reply briefs.
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