Connect with us

Ripple

Response on Feb. 15? FOIA request from Ripple could be pivotal, says lawyer

Published

on

  • Ripple Labs could receive a response from the SEC by Feb. 15 on its Freedom of Information Act why Ether (ETH) was classified as a non-security. 
  • The chances of the FOIA request being approved are good, and could become crucial to Ripple’s defense strategy against the SEC. 

Jesse Hynes, an attorney at Hynes Law Group, discussed in a new YouTube from “Crypto Eri” his take on Ripple Labs’ Freedom of Information Act (FOIA) letter that the company filed as part of its response to the SEC complaint. From the perspective of many, Ripple has made a bold move by requesting information through the FOIA request about how the U.S. Securities and Exchange Commission (SEC) determined Ether’s status as a non-security.

The Freedom of Information Act specifically asks for “all communications with the Ethereum Foundation and/or other relevant entities (including but not limited to ConsenSys) or individuals in the Ether ecosystem (including but not limited to Vitalik Buterin, Anthony Di Iorio, Charles Hoskinson, Mihai Alisie, Amir Chetrit, Joseph Lubin, Gavin Wood, and Jeffrey Wilcke), or any attorneys or other individuals, [….], and all documents […] upon which it [the SEC]relied in deciding that Ether is not a security.”

The possible reasons behind Ripple’s FOIA request

As Hynes confirmed, the SEC has 20 days to respond to the FOIA, so a response should appear “around February 14 or 15.” In the attorney’s experience, Ripple has a good chance of receiving a response since the SEC has not yet released a response:

In my experience with it if Ripple is going to be denied, they probably would have already been told the grounds of denials. They usually get back pretty quickly on that.

The SEC also has the ability to extend the deadline for an additional 30 days, although this is usually done when they need to release the information. Hynes, with regard to the SEC vs. Ripple litigation, filed a FOIA request himself to get “all the information” but was denied within 3 days. In terms of why Ripple Labs’ lawyers decided to make the FOIA request, Hynes made two assumptions:

Advertisement

First part is that I do think that we are going the public route for a reason. […] because they would be able to ask for this information in a private sealed discovery way where they couldn’t share it. […]

But second I really think, if this is going to trial, they are seeking information so that they can really compare, you know side-by-side, XRP to Ether. […] they can say look, how come that this crypto is good, and this crypto is bad. I don’t get it. That’s the biggest reason they want this information.

Will the SEC do an about-face under Gary Gensler?

Hynes also speculated on whether the U.S. Securities and Exchange Commission might make an about-face in its stance on cryptocurrencies under its new chairman, Gary Gensler. As is well known, Gensler is well acquainted with the space.

Most recently, Gensler was employed at MIT as a professor of blockchain, digital currencies, financial technology and public policy in the business school and senior advisor to the MIT Media Lab’s influential Digital Currency Initiative. But that’s not the only reason Hynes thinks it’s possible Gensler won’t follow Jay Clayton’s policies:

Advertisement

What I think, and this is total speculation, what I think what Gary Gensler might try to do is he might try to take a step back from prior actions. I heard commissioner Peirce in a few […] talks, and she kept saying ‘This is a fresh start’.

I think Gary Gensler will try for that fresh start. It could look like something as settling with Ripple to the point where they say ‘pay us for the past actions, we not gonna decide whether it is a security.

Nonetheless, Hynes doesn’t think a “win” for Ripple is guaranteed. As Ripple also noted in its response to the SEC, the central issue in the lawsuit will be the definition of an investment contract, and that term, Hynes said, has never really been defined by Congress:

I think they have three really good arguments, but I am not saying that they are winning on any of them. To be quite honest […], Ripple could lose this lawsuit, they really could, and it’s not because I believe XRP is an investment contract. It’s because an investment contract is broad, it could really mean a lot of different things. It was never actually defined by Congress.

Advertisement

Ripple

Ripple Deepens its Footprint in The Middle East Through Pyypl

Published

on

Ripple deepens its footprint in the Middle East region through a partnership with international blockchain-based financial services company Pyypl.

Ripple announced the news in a blog post on Monday, October 25. Through the partnership, two companies aim to bring instant, low-cost remittances to the Middle East and North Africa (MENA) region, starting with the United Arab Emirates (UAE).

Pyypl is a non-bank financial services provider focusing on the Middle East, Africa, and Central Asia. According to the announcement, Pyypl has started using RippleNet’s On-Demand Liquidity (ODL) payment service in the Philippines. This means users of Pyypl can now send money from UAE to the Philippines. The companies have plans to expand the ODL-powered payment network to new markets as well as explore additional use cases in the future.

Advertisement

ODL is the payment service provided by Ripple’s global payment network RippleNet. Through the On-Demand Liquidity (ODL) service, RippleNet leverages the digital asset XRP as a bridge between two currencies, eliminates pre-funding of destination accounts, reduces operational costs, and unlocks capital.

In ODL, the money to be sent is converted to Ripple native token XRP and then sent over by using Ripple’s XRP ledger. On the receiver side, XRP can be converted back to the currency the receiver wants.  According to the company, sending money anywhere in the world takes as little as three seconds.

According to Ripple, the Middle East and North Africa (MENA) region is home to two of the top three remittance corridors in the world. Traditional remittances are often plagued by slow, expensive, and opaque transactions. However, by using ODL and XRP, Pyypl will now provide instant, low-cost remittance options for people sending money into and out of the region. The announcement notes that “XRP will not be held within the UAE and transactions will not involve the currency AED as part of the payment flow.”

Advertisement

Antti Arponen, Co-Founder and CEO of Pyypl, commented:

“We’re excited to be Ripple’s first partner of choice to bring the deployment of ODL to the Middle East. This enables our ever-increasing number of users to deliver remittances instantly and cost-effectively. We’ve also reduced our inefficient use of capital through ODL, and look forward to an exciting rollout of its capabilities across the region.”

Ripple is not the new entrant to the MENA region. As Crypto Economy reported, Ripple has recently announced a partnership with Qatar National Bank (QNB) with a focus on cross-border payments for Qatar citizens. Ripple also established a regional headquarters in Dubai in 2020 to support its customers. In the previous week, Ripple announced a parthership with Al Ansari Exchange, the UAE-based foreign exchange, to provide remittance service from UAE to Malaysia.

Advertisement

News Source

Continue Reading

Ripple

Ripple Collabs With Pyypl to Expand ODL Services in MENA Region

Published

on

  • Ripple partners with Pyypl to expand ODL services in the MENA region.
  • Through this ODL synergy, users will enjoy instant and cheap remittance services.
  • The United Arab Emirates (UAE) will be the first to access this.

Ripple announced that it is now in a fantastic partnership with blockchain-based fintech company Pyypl to continue expanding On-Demand Liquidity services particularly, in the Middle East and North Africa (MENA) region.

Moreover, with this partnership release, Ripple and Pyypl will work hand-in-hand to provide instant and low-cost remittances services. Based on the report, among the other MENA regions, the United Arab Emirates (UAE) will be the first to experience the ODL services.

Notably, this fintech innovation by Ripple aims to make remittance services fast and easy in terms of the to-and-fro of transactions in the MENA area. Of note, as part of the payment flow, “XRP will not be held mainly in the UAE.” Also, all the transactions under this ODL synergy in the country will not involve AED —  the UAE native currency.

By banking the unbanked, Pyypl will meet its long-term goal of providing digital payments for the underserved smartphone users in the MENA area. Best of all, Pyypl will also use Ripple’s ODL to remove high-cost pre-funded accounts needed in the traditional cross-border payments.

Advertisement

Pyypl’s Co-Founder and CEO Antti Arponen said,

unlocking these previously trapped funds can help better grow and scale the business.

To cut a long story short, this announcement carries Ripple’s ever-growing presence and momentum ahead in the Middle East and North Africa.

News Source

Advertisement
Continue Reading

Ripple

Warrant Buffet backs RippleNet’s Nubank while SEC vs Ripple case drags on

Published

on

  • Warren Buffet’s conglomerate Berkshire Hathaway has invested $500 million in Brazilian digital bank Nubank, a member of RippleNet.
  • The SEC v. Ripple case drags on as both disagree on the nature of documents.
  • Ripple has argued that the SEC has not articulated a link between the extra documents in its decision-making.

SEC v. Ripple proceedings continue as the court concedes SEC’s extension request and pushes the expert discovery deadline to January 14. There are several complications in the case, and the American regulator did not object to filing exhibits being filed under seal. 

Berkshire Hathaway invests in RippleNet member bank

Warren Buffet’s conglomerate firm Berkshire Hathaway poured in a $500 million investment in Brazilian digital bank Nubank. The Latin American NEO bank is the largest financial technology bank in the region. It is a member of RippleNet and has engineering offices in Berlin, Argentina and Mexico City.

The bank recently announced the investment. Nubank’s partnership with RippleNet was revealed nearly around the same time when Buffett’s Berkshire Hathaway made the $500 million investment. 

In Ripple’s defense against the accusations made by the Securities & Exchange Commission (SEC), the firm has claimed that the SEC failed to “articulate” a link between the three extra documents (requested by Ripple) and its decision-making process. 

Advertisement

Ripple’s October 22 filing reiterates that the documents are highly relevant to the defense. Further, Judge Netburn has ordered the SEC to respond to Ripple’s interrogatories and identify the terms of the “investment contract” from XRP sales. 

The order reads:

Accordingly, Defendants’ motion regarding Ripple Interrogatory No. 2 is GRANTED, and the SEC must supplement its response to Interrogatory No. 2 to identify any specific contractual terms and not just implicit and explicit promises as previously identified.

Mike Novogratz, the founder and CEO of Galaxy Digital, has argued that community resilience in the SEC v. Ripple case has led XRP’s price to multiply three times despite the ongoing lawsuit. 

Advertisement

Novogratz called XRP 

a diversified financial services and investment management innovator in the digital asset, cryptocurrency and blockchain technology sector.

FXStreet analysts have evaluated the XRP price trend and predicted that the altcoin’s price will likely hit $1.50. 

News Source

Advertisement
Continue Reading