Ripple is one of the biggest names in the cryptocurrency market. The SEC has filed its motion for summary judgment in the Ripple lawsuit. The case dates back to September 2018, when the U.S. Securities and Exchange Commission (SEC) filed a complaint against XRP II, LLC, and Ripple Labs, Inc., alleging that XRP is a security under federal law. The agency said it was seeking to have the court find that Ripple’s sale of XRP tokens violated federal securities laws by not complying with those regulations.
The Securities and Exchange Commission (SEC) filed its summary judgment against Ripple Labs in its lawsuit against the company, arguing that it had violated securities laws by selling unregistered securities.
The SEC claims that Ripple Labs sold $100 million worth of XRP tokens to fund development, but didn’t register these sales as required by law.
If the court sides with the SEC, a civil penalty will be determined by the judge. The amount of this penalty will be based on the facts of the case and not an amount predetermined by statute. Under SEC rules, a judge can impose a fine up to triple what was originally proposed by the agency (in this case $3 million).
The SEC could also ask for less than it initially wanted in its summary judgment submission — something that happens frequently in securities cases.
Ripple Case Drawing To A Conclusion
As an investor, you probably want to know how the case will be resolved. A summary judgment means that a judge has already decided that at least one of the parties involved in a case was right or wrong on certain issues. This can speed up the resolution of cases and help avoid lengthy appeals processes.
The SEC filed its summary judgment for the Ripple lawsuit last week, which outlines what it believes is enough evidence for why XRP should be categorized as a security under federal securities laws.
The agency acknowledged that there is debate about whether all cryptocurrencies are securities or not; however, it maintains that since XRP was designed specifically to be used within Ripple’s network and therefore cannot appreciate in value like other types of crypto assets do (due to its limited supply), then this makes it more likely than not that XRP should fall under their purview and be classified as such by regulators—meaning it would most likely become illegal for companies using cryptocurrency assets as part of their business model if they don’t comply with new regulations set forth by regulators across various jurisdictions around the world over time.”
