The SEC vs Ripple case has taken yet another intriguing turn, as Ripple’s legal officer Stuart Alderoty reveals 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 past case that serves as a precedent for the Ripple lawsuit.
In his tweet, Alderoty referenced a 1946 Supreme Court case known as “Howey”, where the SEC unsuccessfully argued that an 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 now, stating that “Common Interest ≠ Common Enterprise.” This statement suggests that Ripple’s case is grounded in legal precedent, giving them a solid foundation to challenge the SEC’s claims.
Ripple vs SEC: What’s Been 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 for many in the crypto world, as it has significant implications for the industry. The SEC alleges that Ripple and its executives engaged in selling unregistered securities, a violation of US securities laws.
Ripple has maintained its innocence in the case and has been 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 losses to innocent third parties” through its actions against the company.
The case has been ongoing for over a year, with both parties presenting their arguments in court. However, Alderoty’s tweet suggests that Ripple’s legal team isn’t backing down and is continuing to build its case against the SEC. The reference to the “Howey” case is significant because it established the legal test for determining whether an asset is a security. If Ripple can show that XRP does not meet the “Howey” test, then it could be a game-changer for the entire cryptocurrency industry.
The case has seen several developments in recent months, including a ruling by the court allowing Ripple to depose former SEC official William Hinman, who allegedly made comments indicating that XRP was not a security. The SEC has fought against Hinman’s deposition, arguing that it would be “unreasonable and oppressive.”
The U.S. Securities and Exchange Commission’s motion to seal the controversial William Hinman Ethereum speech docs has just been rejected by Judge Analisa Torres — a move hailed by Ripple CEO Brad Garlinghouse as a remarkable step toward transparency.
It’s 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 matter. Some have accused the SEC of attempting to regulate the crypto industry through litigation rather than through the proper channels of rule-making and legislation.
Despite the twists and turns of the case, it is clear that both Ripple and the SEC are taking the matter seriously. The lawsuit’s outcome will have far-reaching implications for the crypto industry, and it’s anyone’s guess which way it will go. However, with Stuart Alderoty and the rest of Ripple’s legal team continuing to build their case, it seems likely that the case will continue to make headlines for some time.