An interesting turnaround took place in the lawsuit between Ripple and the SEC, when two defendants requested that their connection to the case be rejected altogether, which may turn the case in favor of Ripple.
In the lawsuit Ripple vs. SEC made an interesting turning point
In a request, Ripple co-founders Bradley Garlinghouse and Christian A. Larsen asked the court to deny their involvement in SEC lawsuits against their Ripple Labs on the grounds that a recent report released by SEC Commissioners Hester Peirce and Elad L. Roisman stated that the SEC had not provided them with any warning of breaking the law.
Attorney Jeremy Hogan discussed the implications of the petition for the original case. He says in a YouTube video that the report is a “gift from heaven” for Ripple because it could turn the case around in their favor.
The current cause of action against Ripple against them raises two important allegations, namely that they did not sell unregistered securities when the XRP tokens were sold and that, even if they did, the SEC did not provide them with any warning of their anti-regulatory behavior. In particular, SEC also did not provide evidence that it would send them any warnings.
From the SEC report, it seems that even now the securities regulator’s regulations are still unclear. It is not clear how they are applied to cryptocurrencies, why the SEC does not give fair notice to firms in the cryptocurrency sector, and a recent settlement reached by the SEC with another cryptocurrency firm, Coinschedule, was mentioned.
This seems to be another small win for Ripple. The court also recently gave Ripple permission to strike out a statement from former SEC director William H. Hinman, who said the ETH was not a security. Although the court has set limits on what can be requested during deposition.
In Hogan’s view, the request opens a whole new part of the case that will certainly help Ripple. He also thinks that the actions of two SEC commissioners in writing such an incriminating report against their office were deliberately aimed at speaking out in support of the cryptocurrency industry.
With two out of five SEC commissioners saying the regulator does not currently have clear laws that could apply to cryptocurrencies today, Ripple’s defense that it received no warning could succeed.