XRP surged 9% while Ripple played some strong hands in the battle against the SEC by flooding them with hundreds of legal documents so let’s read more in our latest Ripple news today.
The price of XRP as the seventh biggest cryptocurrency by market cap, blew up by 9% in the past day to reach $1.19. the rise in price followed a few strong maneuvers by Ripple over the past ten months then it is fighting the Securities and Exchange Commission, regulator. XRP surged 9% while the battle continues. Since December 21, 2020, Ripple locked the horns with the SEC in a grueling legal fight as the SEC alleged that Ripple made $1.38 billion by selling XRP as an unregistered security. Ripple denied that these sales constitute securities offerings but now, Ripple filed a letter to Magistrate Judge Netburn calling out the SEC for negligence in the handling of the case after ripple got almost no answers to the 30,000 requests for Admission that is lodged with the SEC since the case began.
The RFAs are “yes or no” questions which aim to move the lawsuit alogn faster by resolving the issues in the case. The SEC called the RFAs “abusive, unreasonable and oppressive” and even said that it was overwhelmed by the number of them, arguing that it took more than 100 hours to respond to only 254 RFAs already. The SEC said it needs about 30 minutes on each RFA in order to give the right answer as the answers can be used against them in court. Ripple countered that the $1.38 billion disgorgements the SEC demands are from contracts that the SEC has not reviewed thoroughly.
Ripple played another strong hand against the SEC and at the center of the new debate is a speech from 2018 from the former director of the SEC’s Division of Corporate Finance, Bill Hinman. He said that Ethereum was not a security and the SEC claimed that this was Hinman’s personal opinion but the Ripple defense team said that it saw an email chain to a third party in the SEC privilege log which shows Hinman’s speech reflected SEC policy. Judge Sarah Netburn ruled in favor of Ripple and will include the email chain in her review but it is unknown when the outcome will be decided.
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