SEC Vs. Ripple: US Regulator Files New Charges
The prolonged court battle between the United States Securities and Exchange Commission (SEC) and the American software solutions platform Ripple Labs has taken another twist. The SEC has reportedly filed a Letter of Supplemental Authority to support its motion requesting a summary judgment in the case against Ripple.
What the Letter Says
Recently, the District of Massachusetts court aired its opinion in the lawsuit against Commonwealth Equity Services LLC, which grants the SEC motion for a summary judgment. In addition, the court also ruled against the defendant’s cross-motion for summary judgment.
Thus, the US securities regulator believes this supports the commission’s case against Ripple Labs. The case between the SEC and Commonwealth began in 2019 after the regulator sued the firm and its CEO, John Rooney.
According to reports, the SEC alleges that the duo violated federal securities laws by participating in illicit sales engagement and misrepresenting facts. Eventually, the SEC won the case.
Interestingly, the Massachusetts court also rejected the procedural defense, stating that the regulator failed to give the defendant ample notice of disclosure obligations, as revealed in the filing and its argument. However, the SEC noted that Ripple’s “fair notice” objection is not applicable as it was with the Commonwealth case.
According to the SEC, the parallel between the Ripple and Commonwealth case is based on the fact that using a 50-year-old Supreme Court ruling is not enough reason to justify a fair notice request. Nevertheless, the XRP legal community sees no meaningful argument from the SEC’s letter.
Attorney Jeremy Hogan believes that a victory for Ripple is likely if the presiding judge understands the underlying crypto technology and decentralization. Similarly, Bill Morgan, an Australian lawyer, dismissed the contents of the SEC’s letter, saying that there are no semblances between the two cases referenced in the SEC letter.
He explained that there is no similarity between selling a 13-year-old XRP token to buyers with no post-sales obligation and a case where an investment expert failed to disclose all necessary information concerning a potential conflict of interest that benefits retail investors.
Funding Universities And Research Projects
Despite its court battle with the US financial watchdog, Ripple Labs hasn’t stopped making significant impressions in other crypto-related areas. Through the University Blockchain Research Initiative (UBRI), founded in 2018, Ripple has focused on research funding for blockchain projects in several universities.
Since its inception, the initiative has funded more than 45 universities and over 1,000 research projects. The Silicon Valley firm announced the recent milestones on its official Twitter handle, highlighting the funding strategy that has boosted blockchain development and research in numerous institutions.
UBRI is part of Ripple’s impact program to support and fund academic research about blockchain innovation, technical development, and other initiatives in the digital space. So far, Ripple has funded research works in more than 44 universities across 20 countries via UBRI.
In addition, the initiative has introduced close to 345 courses to help expand blockchain-based research. UBRI started with 17 universities in 2018 and later expanded to support 29 more institutions in 2019 after Ripple teamed up with 11 additional universities.
Ripple has pledged to continue expanding its collaboration with research centers amid its ongoing legal process with the SEC.
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