The US Securities and Exchange Commission (SEC) and Ripple Labs have called on a federal court to rule immediately on whether XRP sales violate US securities laws.
In their petitions, Ripple and the SEC are asking Judge Analisa Torres for the Southern District of New York to rule on summary judgment. Ripple claims that the SEC has run out of arguments and evidence and officials cannot refute the fact that XRP is an “investment contract” and not a security.
Ripple CEO Brad Garlinghouse
declaredthat, according to the regulator, “the SEC has no interest in enforcing the law.”
“They want to remake everything and expand their jurisdiction far beyond the powers granted by Congress,” Garlinghouse said on Twitter.
Ripple General Counsel Stuart Alderoty added that “after two years of litigation,” the SEC “is unable to determine a single investment contract.” In its filing, Ripple said that the SEC case “reduces to a perpetual regulation regarding any transfer of an asset.”
The petition alleges that the SEC is unable to prove that XRP holders “expected profits” by investing in Ripple because there were no contractual obligations between the cryptocurrency holders and Ripple. For its part, the SEC argues that an “investment contract” can exist without a contract and without any obligations to the issuer.
Recall that in 2020, the SEC accused the Ripple management of selling unregistered securities worth $1.3 billion. In turn, Ripple demanded and received access to internal SEC documents, where the agency expresses its views on the nature and regulation of crypto assets with the intention of proving that XRP is not valuable paper.
Source: Bits
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