In legal papers, Ripple Labs Inc. said that a recent U.S. Supreme Court ruling supported one of its main arguments against the SEC. Let us explore.
According to Ripple Labs Inc. in court documents filed on Friday, a recent U.S. Supreme Court ruling supports one of its main arguments in the U.S. Securities and Exchange Commission's case involving the cryptocurrency XRP.
The San Francisco-based blockchain payments business stated that the judgment on Tuesday emphasizing that federal laws must provide "fair notice" of what they prohibit stressed the government's right to impose fines on American taxpayers who fail to declare overseas bank accounts.
When the SEC started accusing the company and its current and former chief executives of conducting a $1.3 billion unregistered securities offering by selling XRP, which Ripple's founders created in 2012, the company asked U.S. District Judge Analisa Torres to take the decision into account when she renders her decision.
Ripple and its management have refuted these, and the business claims that XRP has been exchanged and utilized as virtual money.
Torres has been requested by the SEC to rule on whether Ripple had adequate notice that XRP was a security under US law.
According to Ripple and the CEOs, a trial should be held to determine whether or not the statute was ambiguous. Torres may limit the questions presented to the jury or rule that a trial is unnecessary to establish whether XRP was a security.
The lawsuit's outcome may further define whether digital assets are considered securities in the US.
The ability of the regulator to regulate cryptocurrencies and unseal crucial information is still a hot topic of debate even though both parties in the Ripple and Securities Exchange Commission (SEC) case have presented their last arguments and are awaiting a summary judgment.
In the most recent update, pro-XRP lawyer John Deaton disputed Gary Gensler's assertion that all cryptocurrencies other than Bitcoin (BTC) fall under the category of securities. It is significant to notice that SEC uses Ripple to promote XRP as an unregistered security.
Deaton tweeted on February 27 that there is no consensus over securities classification. Gensler made this statement in response to Michael Saylor, executive chairman of MicroStrategy, who claimed that Gensler's remarks showed a developing consensus over the classification of securities.
The outcome of the SEC Vs. Ripple lawsuit will determine US crypto regulation and the implications for the future of cryptocurrencies.
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