XRP Is not a Speculative Investment

crypto block chain

Written by Christopher Liew, C.F.A. at The Motley Fool Canada

Did Wave (CRYPTO:XRP) Does he really violate US securities law because he sold his native token, XRP, an unregistered security? Cryptocurrency investors and the rest in the crypto space await the final verdict on the US SEC lawsuit against Ripplewhich was presented on December 21, 2020.

The regulatory agency maintains that Ripple has made an illegal security offering and that XRP is a security, not a cryptocurrency. While it does facilitate cross-border payments, crypto investors earn a fee. The SEC alleges that defendants Ripple Labs Inc. and two of its top executives raised more than $1.3 billion through an ongoing, unregistered offering of digital asset securities.

Ripple counters that XRP is a useful tool for transferring value across borders through Ripple products, rather than being a speculative investment vehicle. Excitement is building as the case progresses because the court’s decision could have a material impact on cryptocurrency regulations. Meanwhile, demand has prevented XRP from taking flight.

Important dates

The disputing parties cannot claim a signature. advantage however, due to the court’s rejection of their respective motions. He denied the SEC’s motion to reject the defendants’ fair notice defense and also denied Ripple’s claim that there is no fair notice showing the illegal distribution of coins in the highly volatile cryptocurrency market.

The Court for the Southern District of New York, through Judge Sarah Netburn, ordered the SEC and Ripple to reach an agreement regarding the schedule of briefings for summary judgment motions. Netburn said: “The parties are directed to meet and consult on a schedule of briefings for motions for summary judgment.”

The magistrate adds: “The parties shall submit a joint schedule proposal for Court approval no later than one week after the SEC filing.” The individual defendants must file their motions or responses by April 8, 2022. In addition, the SEC must file its position on the additional discovery no later than April 15, 2022. The date for the filing of the proposed joint schedule It is April 22, 2022.

Fair Notice Defense

Some legal experts think that summary judgment will likely focus on the fair notice defense, the fourth affirmative defense. The court’s denial of the SEC’s motion to vacate that defense appears to favor Ripple and his co-defendants. In her previous court order, Judge Analisa Torres noted what critical factors may weigh in a future summary judgment on the fair notice defense.

Ripple said that XRP was not sold as an investment and that the company had no relationship with XRP holders. The defendants’ claims for fair notice could make the difference in the case and lead to a victory. If the defendants had their way, they want the briefing schedule to start in mid-May. The SEC, however, said that was premature. Therefore, the proposed joint programming order this month.

delaying tactics?

John Deaton, a lawyer for 65,000 XRP holders, asks: “Why is the SEC putting in so much effort and dragging this issue out for so long?” At the time of writing, XRP is up 4.6% year-to-date ($0.869205), although it has struggled to reach $1. The last time the crypto crossed the threshold was on November 25, 2021.

SEC lawsuit prevents XRP from rising. Still, the cryptocurrency market cap of $41.74 billion is slightly higher than that of Solarium and Cardano.

The charge Ripple to SEC: XRP is not a speculative investment first appeared in The Motley Fool Canada.

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dumb taxpayer christopher liew has no position in any of the mentioned stocks. The Motley Fool owns and recommends Solana.