The legal tussle between Ripple and the U.S SEC has been a tug of war of sorts. With no end meeting, leaving investors and traders are in a dilemma. Because of which the makers and investors have dealt with huge losses. On the contrary, Ripple does hold ace cards in its deck, against the allegations by the U.S SEC.
It is widely known that Ripple had sought SEC’s guidance for years, but never received any. However, the SEC then filed a $1.3 billion enforcement action. Alleging that every XRP sale since 2013 to be an unregistered security. Meanwhile, Judge Netburn has made orders on two motions, one against each. And crypto proponents bring to notice how the allegations are a threat to the crypto industry and not just Ripple.
What Does the Order From Judge Netburn Hold for Ripple and the SEC?
CryptoLaw firm enlightens the orders made by Judge Netburn on the two motions. One of each is for the defendants and the U.S Securities and Exchange Commission. The order from Judge Netburn has brought a glimmer of hope amongst netizens. Hoping for an end game in the conflict.
Judge Netburn orders the SEC to answer Ripple’s interrogatory and to pin down the specific terms of the investment contracts from the sale of XRPs. And an answer to whether the SEC contends Ripple’s efforts are necessary to influence any increase in prices of the coin.
Netburn also grants most of the motions from Ripple to compel answers. Except for, the motion from the co-founder of Ripple, Chris Larsen. On when XRPL was fully functional. Which is contradicted without prejudice for being “too vague”. In addition, Both parties need to clarify their terms.
Netburn has made grants to some and denies some of the SEC’s motions for protective orders. Notably granting protection on defendants 28,849 RFAs, Writing,
“It Is Hard To View This Stunt As Anything More Than Theatre”.
SEC Allegations Against Ripple Are for the Entire Crypto Industry?
Crypto proponent brings to notice, how the allegations from the U.S Securities and Exchange Commission, against Ripple. Are subjective to the entire crypto space, and not just to Ripple. Owing to the claims made by the governing body, which concern all of the digital coins. The allegations here are not one or two, but numerous.
Ripple CEO accuses SEC that it helped Ethereum claim its second position by market cap. Netizens, to which believe it justifiable, as XRP was the second-largest crypto as of late 2017. And the clarity given to Ethereum did propel it significantly.
Ripple has been losing newer customers from the U.S. However, some reports suggest that the usage of XRP as a bridge currency has experienced immense growth. The on-demand liquidity grew 103% in Q3 this year, from the Q2 of this year. The growth here is all coming from outside of the U.S.
SEC Commissioner Hester Peirce believes that complying with the SEC rules to be a tremendously hard and time-consuming task for crypto companies. And that the SEC should invest in a reasonable framework. As it will bear fruitful results down the lane. Netizens are hopeful of the case subsiding at the earliest, as it has caused more harm than it should.
XRP Weekly Forecast December 6 — 10, 2021
XRP/USD end the trading week at 0.9439 and continue to move within the correction and the bullish channel. Moving averages indicate a bullish trend. Prices are again testing the area between the signal lines, which indicates pressure from buyers and a potential continuation of the growth of the cryptocurrency from the current levels. At the moment, we should expect an attempt to develop a correction and a test of the support area near 0.7205. Where can we expect a rebound again and a continuation of the rise of the cryptocurrency to the area above the level of 1.5505.
XRP Weekly Forecast December 6 — 10, 2021
An additional signal in favor of the growth of XRP quotes in the current trading week December 6 — 10, 2021 will be a test of the support line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the bullish channel. Cancellation of the growth option for the Ripple cryptocurrency will be a fall in prices and a breakdown of the 0.6505 area. This will indicate a breakdown of the support area and a continued fall in XRP/USD quotes with a target below the level of 0.5505. Confirmation of the growth of the cryptocurrency will be the breakdown of the resistance area and the closing of quotations above the 1.3595 area.
XRP Weekly Forecast December 6 — 10, 2021 suggests an attempt to test the support level near the 0.7205 area. Where can we expect the continued growth of quotations with a potential target at the level of 1.5505. An additional signal in favor of a rise in XRP value will be a test of the trend line on the relative strength index (RSI). Cancellation of the cryptocurrency growth option will be a breakdown of the 0.6505 area. This will indicate a continued decline with a target below 0.5505.
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.