The U.S. Securities and Exchange Commission (SEC) recently gave up on its claims by handing over the Hinman Speech documents to Ripple and defendants. However, a lawyer associated with the Crucial XRP lawsuit has stated that there are certain things mentioned in the SEC’s filing that favor Ripple.
Did SEC go for weak claims in XRP lawsuit?
John Deaton, Amicus Curiae and XRP holder’s lawyer in the Ripple lawsuit highlighted weak claims in the commission’s filing. He stated that there is good news for Ripple as SEC hasn’t offered any specific sales with contracts.
However, it is alleged that sales may be done to an accredited investor as it was a subterfuge to get to the secondary market, he added. Deaton specified that there are no specific transactions mentioned, the SEC has just submitted all transactions.
The SEC hasn’t cited any of Ripple’s specific sales in the XRP lawsuit which some included contracts.
US Watchdog opted wrong approach?
As per the lawyers, the Commission’s argument is just a “But For’ argument. For Ripple founders building XRP and selling some of it and giving it away created the secondary market. Therefore but for Ripple’s efforts, none of that would have occurred. While all sales of XRP are because of just Ripple.
Deaton suggested that this is a dangerous argument as later on it can be said that ‘But For’ Satoshi Nakamoto Bitcoin wouldn’t exist.
Earlier, Coingape reported that the SEC filed its Memorandum in Opposition to Ripple. This happened the same day the Hinman speech related documents were handover to Defendants.
The XRP holders’ lawyer went on to advise that if the SEC would have pleaded this case differently then they might have been successful. The US watchdog adopted the all or nothing approach in the XRP lawsuit which can prove to be a problem for them.
- Ripple vs SEC
- XRP vs SEC
