The parent company of XRP, Ripple, and federal regulator SEC has urged a federal judge to rule on the protracted legal tussle involving both parties. In the statement, both entities believe they need a judge to rule if the payments platform is guilty of violating the law in the United States. According to the filing of both parties, they would be interested in a judgment from the court in New York.
Ripple claims XRP did not violate any law
According to the United States of America law, both parties involved in a case can pray the court to make a summary judgment. However, this depends on whether both parties feel enough evidence to support the ruling. This way, the case would not need to proceed to trial.
The Judge that would rule if Ripple is guilty as charged is Analisa Torres. According to a statement by Ripple, the federal agency had continued to fish despite having no single evidence to back their claims of XRP being an investment contract when it went on sale. The SEC believes it has every evidence to nail the payment company in its statement.
The Crypto community reacts to the filing
Brad Garlinghouse, CEO of Ripple, opined that the agency has since lost its zeal to apply the law in the protracted lawsuit. He noted that the SEC is trying to extend its jurisdiction far ahead of Congress’s scope. An executive of the company noted that for the two years that this lawsuit has been ongoing, the agency has failed to establish a contract of investment. The filing also claimed that the agency could not establish that XRP traders could not expect returns as the company did not have a contract or agreement with the traders.
The SEC highlighted that companies could create a contract without physical evidence in its statement. Ripple has also rubbished that claim noting that profits on XRP came mainly from traders’ activities in the market. However, the general crypto community is upbeat about the chances of Ripple after the recent filing. After the court makes the judgment, it could affect tokens regarded as securities. XRP has been doing well in the market, with the token seeing a massive $0.40 in July before crashing to presently trading at $0.34.