Since December 22, 2020, there had been more than four months that the Ripple Labs and the US SEC had been fighting against each other over a lawsuit. In the initial phases of the lawsuit and the hearings, it seemed that the US Securities and Exchange were going to win this feud.
However, the recent developments in the matter seem to have gone in favor of Ripple Labs. It was the last hearing for the month of March 2021 between SEC and Ripple when the court ordered SEC to present their documents against Ripple.
The reason why the US SEC had filed a lawsuit against Ripple was that they claimed that Ripple was selling securities to US citizens in the form of XRP without getting them approved.
On the other hand, Ripple claimed that they had always operated in the United States after the approval from the regulators. Otherwise, they would have never done it in the first place and Ripple claimed that they will prove the SEC’s claim to be wrong.
However, when the court demanded the representatives at the Securities and Exchange Commission to provide the proof suggesting that Ripple was wrong, they were not able to produce any documents.
Finally, the Securities and Exchange Commission has presented the documentation around the authenticity of Ripple. Fortunately, for Ripple Labs, they have also been granted access to the document that has been provided by the US SEC.
In the documentation, the US SEC has expressed how it perceives digital assets and cryptocurrencies.
The lawyers from Ripple Labs’ end have stated that with the help of the documentation, they will be able to defend themselves more effectively against SEC’s claims.
The lawyers have claimed that with the help of the documentation, they will now be able to prove their point. They claimed that XRP is completely similar to Ethereum (ETH) and Bitcoin (BTC). According to the Securities and Exchange Commission, both currencies have been classified as commodities.
On top of that, the lawyers defending Ripple Labs always present another argument at the hearings. They always claimed that it took the US Securities and Exchange Commission a total of 8 years before they decided to take action against Ripple. They stated that the securities offering that the SEC has contested was conducted by Ripple back in 2013.
As confirmed by the CEO of Ripple, Brad Garlinghouse, Ripple had managed to generate a total of $1.38 billion from the securities offering. But the Securities and Exchange Commission filed a lawsuit against Ripple by the end of December 2020 claiming that they had done it without getting their securities licensed.
With the recent development made in the lawsuit, the Ripple lawyers are confident that the company will soon find success.