SEC Contacts Foreign Regulators to Create a Strong Charge Sheet against Ripple Labs
The SEC and Ripple Labs case is nowhere near its completion. It seems that SEC has some tricks left up its sleeve after all. In a new development of the case, the findings come to light that SEC has been bending the rules and going out its way to create trouble for the crypto enterprise. The contents of the recent motion addressed to Magistrate Judge Sarah Netburn indicate that SEC has aggressively reached out to different security regulators around the world.
The defence lawyer appointed for representing Ripple labs executives, Brad Garlinghouse and Chris Larson, appealed to the court to stop the SEC from pressuring the foreign partners of the crypto enterprise into severing its business relations. It seems that SEC has sent about 11 Memorandum of Understanding (MOUs) overseas to different regulatory authorities for fishing out legal documents.
Does Ripple Labs has any Chance to Stay in Business without its Foreign Correspondence?
The motion filed by Ripple Labs defence lawyer has urged the court to put an end to the SEC conduct to exert legal and financial pressure on the foreign correspondence of the enterprise. The motion declares the SEC is ready to bend the business out of shape and to damage their business prospects outside of the United States. The lawyer further added that such a move by SEC falls out of the legal jurisdiction.
Since the commencement of this lawsuit, Ripple labs has continued to grow its foreign clientele and have been able to find 20 new partners in the countries outside of the dominion of the SEC. Garlinghouse also remarked that 95% of the Ripple Labs customers are from outside the US territory. Meanwhile, US-based monetary platforms like MoneyGram have completely folded their business relations with Ripple Labs.
John Deaton, XRP holder and independent lawyer, has managed to show on paper that Ripple Labs has as many as 10,000 USA Investors staked in the company. However, the uptake of the controversial digital token XRP seems to be reclining among US citizens. The main reason for the cause is that Ripple Labs holds all the power over the blockchains and can switch the board at any time it wishes to do so.
The semi-decentralized nature of these XRP token makes it a perilous investment for the citizens of the United States. However, some foreign correspondents are not hesitant to exchange their money into the XRP and took the chance to raise stakes in the on-trial cryptocurrency. The future of XRP seems bleak inside the USA for obvious reasons, but it is to be seen how long the foreign markets take to catch up to the game.
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