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The case surrounding the U.S.Securities and Exchange Commission’s lawsuit against Ripple continues to make waves within the crypto industry.
As the legal battle draws on, some believe recent moves by the technology company and the SEC suggest Ripple Labs might be set for a favorable outcome.
Notably, in mid-March, SDNY District Court Judge Analisa Torres denied a SEC motion filed in March to dismiss Ripple’s defense that it was not given fair notice about consideration of Ripple’s XRP as a security.
Judge Torres also denied a motion from Ripple to dismiss the entire case.
The SEC’s suite against Ripple alleges the crypto company sold its XRP token as a security without proper SEC registration from 2013-December 2020. Ripple’s team argued their coin is not subject to SEC oversight.
Some believe Ripple might have the upper hand as the case moves on as the company is now able to use official statements by the SEC in court, which include comments from SEC official William Hinman stating cryptocurrencies are not securities.
The battle between the SEC and Ripple is already notable as it’s one of the few SEC cases going to court instead of being settled. According to CoinTelegraph’s Derek Anderson, the case’s outcome could spur other crypto entities to challenge the SEC.
Former SEC managing executive for policy Joseph Hall argued on a podcast earlier in 2022 that he was “not entirely sure what the SEC is planning on proving in the XRP litigation.”
According to him, “there is a pretty good chance that [the SEC] will lose on the merits,” as “the Ripple network was operating for years before the last-minute filing of a lawsuit against them.”
As of late March, the SDNY has ordered Ripple and the SEC to strike an agreement for a briefing schedule for summary judgment motions, which should be set in the next several weeks.