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The Ripple Law Suit is progressing, while Ripple Labs is holding a winning hand. The SEC are the Plaintiffs and Ripple is the defendant in the law suit. Procedurally, Ripple is doing great and they have some great points, which they will be presenting at the right point in time.
The possibilities that onlookers feel is for Ripple to have an extremely favorable settlement or a sure-fire win in the trial case.
The reasons for why Ripple is holding a winning case:
- Written Statements from the SEC – Transcript of SEC official William Hinman stating that cryptocurrencies are not securities; however, SEC have proposed a theory in the court stating that XRP is an investment contract, ignoring the economic reality that the real use case for XRP is to work as a “bridge currency” and therefore the reality is that XRP is a currency.
- SEC have to state that Ripple have sold unregistered securities offering, therefore trying to prove that XRP is a security.
- If XRP is not a security per the Transcripts of SEC, then how could have Ripple dealt with anything called “unregistered securities.”
- The big guys at the SEC have stated that cryptocurrencies are not securities. SEC has previously determined that Bitcoin and Ether are not securities. Therefore, XRP is very much a currency.
- SEC is wrongfully alleging that BTC and ETH are currencies and that XRP is a security.
- Ripple Labs are therefore moving ahead to make use of SEC official statements against SEC in the court.
- There was a previous case where a judge ruled that “Ethereum is not a security.” Ripple Labs are getting various documents related to the trial submitted.
- Several SEC motions were over-ruled on this regard.
- William Hinman called Ethereum “sufficiently decentralized” and therefore not a security.
- There are 63 emails and 52 drafts of the key speech by the former SEC Director of Corporation Finance in 2018, where he considered Ether and Bitcoin as non-securities. These documents are so vital for the SEC and they will rather reach a settlement than handing them over to Ripple.
The end of the SEC v. Ripple lawsuit might be closer. The bulk of emails and notes related to the Hinman’s speech can be the light at the end of the tunnel.
The SEC hinted if Judge Sarah Netburn sticks to her previous ruling of ordering the production of said emails, notes, and drafts, the plaintiff will appeal to Magistrate Analisa Torres to make the final decision. So, the same will apply for Estabrook Notes, related to a meeting between ex-SEC’s Elad Roisman and Ripple’s Garlinghouse.
It is very obvious that the SEC are making efforts to drag the case for too long. If the ruling is that the documents should be turned over, the case settles within 60-90 days from that decision or possibly sooner.
John Deaton, attorney representing 65,000 XRP holders in the XRP lawsuit via Amicus Curiae status, opined that the Judge’s probable decision to maintain her ruling on the Hinman’s speech emails equals settlement.
While all these are not too much, but Ripple has a favorable momentum considering these points. If Ripple Labs win, they will be spared from the process of paying $1.3 billion plus interest and filing securities registrations. The money can be used to support the XRP community.
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