The SEC vs. Ripple case has taken yet another intriguing turn, as Ripple legal officer Stuart Alderotti has revealed new findings that go against the SEC’s arguments. Alderoty took to Twitter to make the statement, sharing his perspective on the SEC’s position and highlighting a previous case that served as a precedent for the Ripple lawsuit.
In his tweet, Alderoty referred to a 1946 Supreme Court case known as “Howe,” where the SEC unsuccessfully argued that investment in a “common enterprise” was unnecessary if there was a “community of interest.” Alderoty argued that the SEC was wrong then and is still wrong, saying that “common interest ≠ common enterprise.” This statement shows that Ripple’s case is based on legal precedent, giving them a solid foundation to challenge the SEC’s claims.
Ripple vs SEC: What’s going on?
Ripple, a blockchain-based payment protocol, has been embroiled in a lawsuit with the SEC since December 2020 over allegations of selling unregistered securities. The Ripple lawsuit has been a topic of interest to many in the crypto world, as it has significant implications for the industry. The SEC alleges that Ripple and its executives engaged in the sale of unregistered securities in violation of US securities laws.
Ripple has maintained its innocence in the case and is fighting to have the lawsuit dismissed. The company claims that XRP, its native cryptocurrency, is not a security and, therefore, not subject to SEC regulation. Ripple has also accused the SEC of causing “multi-billion dollar damages to innocent third parties” through its actions against the company.
The case has been going on for over a year, with both sides presenting their arguments in the court. However, Alderoty’s tweet suggests that Ripple’s legal team is not backing down and is continuing to build its case against the SEC. The context of the “Howe” case is significant because it establishes the legal test for determining whether a property is a security. If Ripple can show that XRP does not meet the “Howe” test, it could be a game-changer for the entire cryptocurrency industry.
The case has seen several developments in recent months, including the court allowing Ripple to fire former SEC official William Hinman who allegedly commented that XRP was not a security. The SEC has fought against Hinman’s statement, arguing that it would be “unfair and oppressive”.
Judge Annalisa Torres has just rejected the US Securities and Exchange Commission’s motion to seal the controversial William Hinman Ethereum speech docs – a move Ripple CEO Brad Garlinghouse hailed as a notable step towards transparency. Appreciated.
It is worth noting that the SEC’s case against Ripple has been controversial, with many in the crypto community criticizing the agency for its handling of the case. Some have accused the SEC of attempting to regulate the crypto industry through litigation rather than through the proper means of rulemaking and legislation.
Despite the ups and downs of the matter, it is clear that both Ripple and the SEC are taking the matter seriously. The outcome of the lawsuit will have far-reaching effects on the crypto industry, and it’s anyone’s guess where it will lead. However, with Stuart Alderotti and the rest of Ripple’s legal team continuing to build their case, it looks like the case will remain in the spotlight for a while longer.