Ripple plans to take the ongoing Securities and Exchange Commission (SEC) lawsuit all the way to trial, saying it does not intend to settle with the regulator.
Speaking to Fox Business, Ripple’s defense team says they are confident in their position. They add that standing up to the SEC in a trial setting is necessary to bring more equitable reform to the crypto industry.
BREAKING: @Ripple‘s legal team tell @FoxBusiness they have no plans to settle w @SEC_Enforcement over lawsuit on XRP, confident they can show @GaryGensler in pursuing the case is picking winners and losers in the #Crypto business to the detriment of innovation. Story developing
— Charles Gasparino (@CGasparino) September 17, 2021
Ripple on a roll
Nine months since the U.S securities regulator filed against Ripple on charges of selling unregistered securities, and it’s fair to say things haven’t gone according to plan.
The discovery process has revealed a skewed regulatory process that refuses to provide clarity. What’s more, it has become apparent that the system doesn’t operate for the benefit of investors.
In U.S law, the discovery process is a pre-trial process that aims to compile evidence. After this is complete, both parties will reevaluate their positions and decide whether a settlement can be reached.
Failure to reach a settlement will move the case to trial, the outcome of which will have wide-reaching consequences in terms of setting precedents in law.
In response to the SEC filing in December 2020, Ripple CEO Brad Garlinghouse called this an attack on the entire crypto industry. His words at the time described an injustice that he felt deeply enough about to want to fight.
“Chris and I had the option to settle separately. We could do that, and it would all be behind us. NOT happening. That’s how confident Chris and I are that we are right. We will aggressively fight – and prove our case – through this case we will get clear rules of the road for the industry here in the U.S.”
While some interpreted that as an angry, defiant response, to his credit, Garlinghouse is sticking with the plan.
The SEC’s stance is unraveling
The SEC vs. Ripple lawsuit has revealed significant flaws in the approach of the U.S regulator.
A common criticism that has come out during the discovery phase is in how the regulator is picking winners and losers through their “regulation by enforcement” approach.
So far, it has been established that the SEC did not give fair notice to Ripple, nor did it clarify the circumstances when they sought guidance. To then turn around and file a lawsuit seems ludicrous, and some would even argue a case of entrapment.
Either way, it’s easy to see why Ripple’s defense team is confident in their position.
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