XRP Lawyer Outlines What SEC Misses In Summary Judgment
The legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple’s Ripple is growing. Regulators have been on the lookout for crypto assets and companies flagged as dealing in unregistered securities.
In taking enforcement action, the SEC said XRP is a security and must be registered. It accused Ripple of selling tokens to the public, leading them to an ongoing lawsuit.
As tensions in the legal case intensify, there are some deep revelations in the summary judgment discussion. It was between Ripple’s lawyer John Deaton and Fox business reporter Eleanor Trett. The lawyer made some compelling points about XRP.
XRP lawyer gives missing point
Deaton highlight Get the key points about the token via Twitter. Lawyers representing XRO holders in the case pointed to what the SEC’s motion missed. He said the regulator’s motion in the case did not rely on any experts.
According to Deaton, the SEC lacks expert testimony that can prove the price correlation of crypto assets. This makes their proposal lose all efforts by Ripple and the price of the Ripple token. Additionally, the SEC has no evidence that XRO holders are relying on the conduct and skills of the Ripple team.
The regulator did not state that XRP holders purchased their assets in accordance with the promises made by Ripple and its team. In addition, the lawyer mentioned that there is no expert comment pointing to Ripple’s control or management of the XRP ledger network.
Deaton is an amicus curiae in the lawsuit between the SEC and Ripple. His position is necessary because the case involves considerable public interest in the funds of many investors in XRP tokens. The SEC had asked the court to revoke amicus curiae status because it cited threats to experts in their case.
Situation’s Impact on Ripple
With the absence of expert testimony from the SEC, Ripple’s situation may turn for the better. Deaton noted that the outcome could be a key factor in Daubert’s challenge.
But it may be difficult for the committee to run the risk of relying on it. The reported information is that experts have not interviewed any XRP holders about the case.
Recall that there was an XRP lawyer’s report revealing filings that indicated the XRP ecosystem was in jeopardy. Additionally, part of the SEC’s motion states that Ripple and XRP are a joint venture.
According to Deaton, Judge Torres can make a final ruling on the Daubert motion at any later date. The motion is a challenge for both Ripple and the SEC’s experts in the case.
Featured image Pixabay, Chart: TradingView.com