The strife between the US SEC and Ripple Inc does not seem to end anytime soon.
The SEC filed an amended court complaint in the XRP case.
The top lawyer representing Ripple in the SEC lawsuit case commented on the amended court complaint filed by the U.S. SEC.
In December 2020, the United States Securities and Exchange Commission filed a lawsuit against Ripple Inc for selling unregistered securities in the country. Ever since then, the cryptocurrency industry is closely watching the developments in the case as the decision can substantially impact the fate of the industry overall. While the SEC is adamant in its claim that XRP is a security and must be regulated by U.S. federal agencies, Ripple has constantly argued that XRP is an open-source cryptocurrency. SEC has charged Ripple and its two leading executives Brad Garlinghouse and Chris Larsen, in the case.
On Friday, the SEC filed an amended court complaint. It provides additional details of how the two executives were involved in selling XRP to its institutional investors without proper clearance. SEC claims that Garlinghouse and Chris Larsen have significantly approved and negotiated institutional sales by Ripple and sales of XRP to the investors while Garlinghouse was the CEO of the firm. Even though the SEC has modified its latest filing, the Ripple lawyer, Stuart Alderoty, has questioned the amended complaint. He noted that “As many of you have seen, the SEC filed an amended complaint.
“The only legal claim remains: did certain distributions of XRP constitute an investment contract? Disappointing the SEC needed to try to ‘fix’ their complaint after waiting years to bring it in the first place.”
Alderoty noted that the SEC complaint itself acknowledges XRP as an efficient cross border payments alternative and proves that the asset has a lot of utility.
In a major blow to Ripple, MoneyGram suspended the $50 Million pact with Ripple due to the ongoing SEC lawsuit case. However, as reported by Fortune today, Former chair Mary JO White supported Ripple in the lawsuit case and claimed that SEC is dead wrong.
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