In a Wednesday announcement, Ripple said the $250 million fund would be focused on accelerating adoption in the crypto space by working with nonfungible tokens, or NFTs. The platform said it wanted to address concerns with the minting of the tokenized artwork, including “clunky” user experiences, high transaction fees and the possible effects on the environment.
“We believe NFTs embody the promise of tokenization and represent a tipping point for its embrace by the mainstream,” said Ripple. “Through the Creator Fund and the XRPL, we’re excited to unleash new utility for NFTs and accelerate the broader shift to tokenization.”
According to Ripple, NFT marketplaces, including MintNFT and Mintable and creative agencies, would be among the first to have access to the fund. Any proposed NFT use case would be built on the XRP Ledger, giving creators an opportunity to monetize their work. Ripple CTO David Schwartz has previously cited the ledger’s low cost, high speed and payments features to “streamline NFT creation at scale.”
In July, Mintable announced it was planning to integrate the XRP Ledger as it was “ideally suited to deliver a seamless experience for NFTs” — the platform has minted more than 700,000 items since 2020. Both Ripple and the NFT marketplace have made public statements on the environmental concerns in the crypto space. While Ripple has pledged to become carbon net-zero by 2030, the company has also said that its XRP ledger is already carbon neutral.
Ripple, SEC back in the ring, due to a Court of Appeals decision in a separate lawsuit
Those following the SEC vs Ripple Labs lawsuit might have expected radio silence for the rest of the year, after the court pushed the discovery deadline to 14 January 2022. However, a new development in early December has caused a splash. Now, it seems that both the SEC and Ripple will need to take action.
Yet another deadline
A filing shared by defense lawyer and former federal prosecutor James K. Filan revealed that Judge Sarah Netburn ordered both parties in the case to file more documents. However, this was due to legal developments in a totally different court case.
Citing the “scope of the deliberative process privilege,” the judge stated,
“In light of this decision, by December 8, 2021, the parties shall simultaneously file letter briefs no longer than three pages to supplement their arguments concerning Defendants’ motion to compel, ECF No. 289.”
What is deliberative process privilege? To refresh your memory, this protects an institution’s decision-making process from external parties – including defendants in the court, if need be.
In simple English, please
Outside the crypto world, the Natural Resources Defense Council sued the U.S. Environmental Protection Agency [EPA], which was ordered to produce specific documents about its pesticide policies. The EPA objected to this, and deliberative process privilege was a part of their reasoning for the same.
The United States Court of Appeals for the Second Circuit ruled that the EPA didn’t have to show all of its records concerning a policymaker’s role. What’s more, the court issued a new decision regarding what is covered under deliberative process privilege.
Now, Ripple Labs is feeling the ripples. After all, the SEC claimed deliberative process privilege after the blockchain company filed a motion compelling the regulator to produce three additional email documents.
As previously reported, Ripple claimed the documents “appear to be Highly Relevant to the Defense.”
Naturally, the XRP community has been wondering whether this update helps or harms Ripple.
For his part, attorney Jeremy Hogan claimed,
“…I’ve read the opinion and the law change slightly favors the SEC. Let’s see what the briefs say!”
In less than five days, both the SEC and Ripple will need to understand the new decision, and quickly submit their arguments. This has huge implications for Ripple’s motion to compel the SEC to produce the three documents.
Rain on Ripple’s parade?
The unexpected court development comes around a week after Ripple CEO Brad Garlinghouse expressed his optimism regarding the lawsuit. Voicing his belief that the case would end in 2022, he said,
“Clearly we’re seeing good questions asked by the judge. And I think the judge realizes this is not just about Ripple, this will have broader implications.”
Ripple vs. SEC Drama Update: Parties Have Three Days Left to Supplement Their Arguments
Renowned corporate lawyer James Filan shares an order from the U.S. magistrate judge crucial for Ripple case.
Both Ripple Labs Inc. and the U.S. Securities and Exchanges Commission (SEC) should provide additional arguments to supplement their positions in three days.
New legal briefs should be filled before Dec. 8, 2021
According to the scanned copy of a document shared by Attorney Filan, U.S. Magistrate Judge Sarah Netburn has issued an order that asks Ripple Labs Inc. and the U.S. SEC to “simultaneously” file letter briefs.
#XRPCommunity #SECGov v. #Ripple #XRP Judge Netburn orders the parties to file supplemental briefing on Deliberative Process Privilege in light on recent Second Circuit case. https://t.co/KojVb9SOQZ pic.twitter.com/HCYJYAtwuW— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) December 3, 2021
The briefs should be filed before Dec. 8, 2021. New papers should supplement the parties’ arguments regarding Ripple’s latest motion to compel.
These supplemental briefings should be filed as Deliberative Process Privilege.
Mr. Filan’s audience is certain that the obligation to provide new briefs was hotly anticipated and should be interpreted as a small win for Ripple.
“The law change slightly favors the SEC”
At the same time, attorney Jeremy Hogan shares that this extraordinary document (“law change”) favors the position of the Securities and Exchange Commission.
However, commentators should wait for the release of new briefs, Mr. Hogan concludes. He compared the court order to the behavior of a “daddy” who changes his child’s bedtime.
As covered by U.Today recently, the SEC accuses Ripple Labs Inc. and its key officials, Brad Garlinghouse and Chris Larsen, of offering illegal securities to U.S. citizens in the form of XRP tokens.
This year-long legal battle highlighted many crucial questions regarding crypto regulation in the U.S., such as the status of crypto tokens and securities.
Will This Move By The Court Turntables of Ripple’s Stance Against The SEC?
XRP has fallen prey to the global crypto market crash alongside other digital assets, which has left the entire space trembling. The crash has resulted in the industry shedding the market cap by 15.1% at $2,330,560,166,406. Traders and hodlers from the crypto town have been expressing concerns over the crash. As the target of $100,000 for BTC seems out of reach.
Which could persuade altcoins to embark on a massive rally towards the alt season. Another bummer for the XRP community seems to be around the block. As the court of appeal has ordered the parties to file supplemental briefing on Deliberative Process Privilege. Meanwhile, an XRP whale withdraws 150 million XRP from Binance into a private wallet.
XRP Enthusiasts Need To Be Vigilant This Coming Week!
Judge Netburn orders the parties to file a supplemental briefing on Deliberative Process Privilege in light of the recent second circuit case. The order states that on November 29th, 2021, the court of appeals issued a decision addressing the scope of the deliberative process privilege.
In light of the decision by December 8th, 2021, the parties shall simultaneously file letter briefs. No longer than three pages to supplement their arguments concerning defendants compel. The attorney cites that since the law has changed, the parties are being given a chance to re-brief as per the new law.
He further mentions that DPP is important as to whether the SEC has to provide certain internal communications. About digital assets and whether they are securities. The attorney believes the law change to slightly give the SEC an upper hand. The increase in updates regarding the lawsuit has influx curiosity in the space.
Will This Be A Turning Point in The Legal Tussle?
The 8th of December also sees a hearing of Chief Executive Officers from platforms across the industry. The CEOs of the firms will be witnesses in the hearing scheduled on the 8th of the month. Sources suggest that the witness list includes the following delegates.
- Jeremy Allaire, CEO of Circle Pay.
- Sam Bankman-Fried, CEO of FTX U.S.
- Brian Brooks, CEO of Bitfury Group.
- Chad Cascarilla, CEO of Paxos Global.
- Denelle Dixon, CEO of Stellar development foundation.
- Alesia Haas, CEO of Coinbase Inc, and CFO of Coinbase Global Inc.
On the other hand, U.S Senate Banking Committee Ranking Member Toomey had expressed disappointment. In the SEC chairman Gary Gensler’s response to the request of Senator for public guidance revolving around cryptocurrencies. The chairman’s response did not answer the cryptos the SEC views as securities and which it views as commodities.
Collectively, the protocol has been rising despite the odds. According to sources Bitrue cryptocurrency exchange is launching XRP ledger Nerian. An XRP whale withdraws 150 million XRP from Binance into a private wallet. Hopefully, the legal tussle prevails in favor of Ripple with the start of 2022.