Ripple believes the SEC actions were as a red from leverage from the United States government.
Dating back to December 2020, Ripple Labs Inc. has been in a lawsuit with the United States SEC over regulatory issues. The SEC stated that the firm was operating in violation of regulations.
Major Updates
- SEC issues MoU requests to foreign governments.
- Ripple views SEC actions as an abuse of US Government power.
- Ripple states the requests were outside procedure.
- Ripple suggests the requests were a compulsory action.
Regarding the recent Discovery Hearing between the US SEC and Ripple, the regulatory body indulged in various third-party actions. They were made to request certain documents related to Ripple Labs Inc. from global regulators.
Ripple disagrees with this and finds these actions outside legal processes.
These requests from associates of Ripple Labs Inc were never part of the case, and they had only found out from one of the companies the SEC had issued a request to.
Senior trial attorney to the SEC Jorge Tenreiro explained that the MoUs were sent out as cash flow does not end within the country‘s borders. He also emphasized that it was not the SEC’s intent to disclose the requested content as they contain confidential information.
Ripple, however, countered this by stating that this was an attempt to “gain an unfair advantage,” and the requests are not as “voluntary” as previously stated. Ripple believes that these requests were “compulsory” and are of the “weight and power of the US government.”
The Judge, Sarah Netburn, assured Ripple that these actions were indeed voluntary as other countries do not fall under the United States jurisdiction; therefore, they could freely refuse to go ahead with the request of the MoU.
However, Ripple's attorney responded by explaining that these actions were mandatory to foreign regulators as the United States globally holds high authority. Therefore, a request from the United States government from another country is a compulsory action.
In summary, the Ripple vs. SEC lawsuit is still ongoing as no verdict was ruled during the hearing. Although, everyone is expecting something noteworthy in upcoming trials.
What do you think is the fate of ripple labs Inc. in this legal affair?
