MCS | SEC VS XRP When will it end?

MCS | SEC VS XRP When will it end?

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On December 22, 2020, the SEC filed a lawsuit against Ripple for selling unauthorized securities products.

In 2013, it was advised that attracting $1.5 billion through $XRP sales was a breach of regulations. Ripple is also accused of distributing billions of dollars in XRP in return for non-cash compensation such as manpower and market making services.

According to the complaint, Ripple co-founder Christian Larsen and CEO Brad Garlinghouse have personally sold $600 million worth of XRP unregistered in addition to structuring and promoting XRP sales used to finance the company's business operations. The complaint alleges that the defendants failed to register or meet the registration exemption for the offer and sales of XRP in violation of the registration provisions of the Federal Securities Act.

Source: Investing.com

On the other hand, XRP is denying the allegations in general suggesting that they are only legal conclusions.

In addition, it can be seen that the court is in a position to request a direct review of the evidence by denying the fact that the evidence mentioned by the SEC at the time of presentation of the allegations in the complaint is true.

In the case, it is determined that a number of investigations into the facts of the legal judgment on the definition of securities can proceed, and the results are expected to be decided accordingly.

In an interview with CNBC in November, CEO Brad Garlinghouse showed confidence saying, "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," and that they are "seeing pretty good progress despite a slow-moving judicial process.”

On March 14, the SEC asked the court to postpone the discovery deadline from the 21st to the 23rd, which was extended by two days to supplement the evidence, and Ripple submitted a counter-response.

Ripple Labs lawyer Jeremy Hogan wrote in his last tweet that he predicted a mutual agreement within April this year, but in his latest tweet he mentioned that he would win the case from August to November.

Source: Ripple

The Arab Monetary Fund, an institution affiliated with the Arab Life Insurance, is drawing attention as they have selected a global payment network RippleNet, a blockchain-based global payment network of Ripple (XRP) as one of the alternatives to digital currency issued by the central bank.

It is also reported that a Major Canadian Bank Canadian Imperial Bank of Commerce (CIBC) is indirectly participating in RippleNet. Ripple has launched an incentive program to donate 1 billion XRP tokens in the next ten to twenty years.

So far, more than 50 open-source projects have received more than $6 million in funding, and more projects are expected to be involved.

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