According to data from CoinMarketCap, the cryptocurrency XRP has gone up 35% in the past 24 hours to achieve a price of $1.85 at the time of this writing. Over the weekend XRP went up a hefty 39%; these huge surges can be attributed to the news that its developer, Ripple Labs Inc, won another legal battle against the U.S. Securities and Exchange Commission (SEC).
At the heels of this news, Ripple CEO Brad Garlinghouse and Chairman Chris Larsen filed a motion to dismiss the lawsuit outright and end it.
Back in December 2020, the SEC filed a lawsuit against Ripple alleging that the company’s sale of XRP was an unregistered securities offering that was worth over $1.38 billion. The lawsuit named Garlinghouse and Larsen as the co-defendants and alleges that the two aided and abetted the company’s violations and made $600 million in profit from the unregistered sale of XRP.
Ripple argued that XRP is not a security and that the SEC failed to give the company fair notice that its sale of the crypto violated securities laws.
During the case, the SEC requested to look at 8 years worth of financial data belonging to Garlinghouse and Larsen but a judge granted a motion to dismiss the request. U.S. Magistrate Judge Sarah Netburn rejected the demand stating in her ruling, “The SEC’s requests for the Individual Defendants’ personal financial records…. are not relevant or proportional to the needs of the case.”
My first video on the SEC v. Ripple lawsuit was titled "XRP Is Not Dead." I made the video Jan. 4 after reading and hearing that Ripple was dead in the water and XRP along with it. It took me two hours of research to see that "..the SEC has an uphill battle." 17 weeks later… 🙂
— Jeremy Hogan (@attorneyjeremy) April 13, 2021
This victory is the second of a previous win where the court granted Ripple access to SEC’s documents and communications with third parties over other cryptocurrencies and digital assets like Bitcoin and Ethereum.
Attempt to Dismiss
On April 12, Garlinghouse and Larsen have submitted a motion to Judge Analisa Torres to dismiss the SEC’s complaint with prejudice which would not only end the lawsuit but also prevent the SEC from refiling the same compliant in the future. Garlinghouse’s attorneys said in a preliminary statement, “The SEC is straining to invoke a World War II-era precedent about orange groves to the nascent technology around digital assets and blockchain.”
Larsen’s attorneys said in their statement, “The SEC seeks to regulate a novel and innovative financial asset by bringing an ill-conceived enforcement action in an undeveloped and highly uncertain area of the law.”
The Big Surge
Upon the release of this news over the weekend, the price of XRP shot up tremendously and achieved a market cap of over $81 billion at the time of this writing. XRP holders are seeking to join Ripple in fighting the SEC lawsuit with XRP advocate Thomas Hodge launching a petition to ask SEC chairman nominee Gary Gensler to resolve the lawsuit once he is confirmed by the Senate.
Stay calm everyone this is just the beginning:
1. Sec lawsuit is not over.
2. Xrp hasn't been relisted.
3. Tokyo Olympics hasn't started yet.
4. Flair network is not live yet.
Its just going to get more interesting from now on #XRPCommunity
— Sikandar Razzaq ⚡ (@sikandarrazzaq) April 6, 2021
The SEC is set to file its response to the motions to dismiss the lawsuit by May 14.
So while things look good for Ripple and XRP, they’re not out of the woods just yet.
If you liked this article, check out this one on Coinbase going public.
So, what do you think of this? Will Ripple win the lawsuit? And what do you think will happen after?