Update on the Ripple v. SEC lawsuit as of December 26, 2022


Initial speculations suggested that the Ripple and Securities and Exchange Commission (SEC) issue will be resolved on December 15, but the crypto industry is still awaiting the verdict.

Notably, the United States regulator sued the blockchain startup for unlawfully trading XRP coins valued at over $1.3 billion. According to the SEC, the tokens sold between 2013 and December 2020 were securities.

Currently, both sides have submitted their last arguments, indicating that the conclusion date may be approaching. Before the final judgement, defence attorney James Filan disclosed that the SEC had submitted a second request to seal some papers.

The agency wants to seal records in three categories, including the names and identifying information of SEC experts and XRP investor declarants, personal and financial information, and internal SEC papers indicating discussion and deliberation among SEC employees.

Notably, Ripple gained another victory when the court dismissed the SEC’s request to erase the identities of the consulting companies that assisted in assembling expert witnesses.

Intriguingly, Ripple achieved tiny victories throughout the hearing as the presiding judge rejected SEC’s request to suppress papers pertaining to former Division Director William Hinman. According to the records, Hinman described Bitcoin (BTC) and Ethereum (ETH) as not being securities in 2018. The SEC has in fact argued that the records are private and involve internal considerations.

At the same time, XRP and Ripple jointly submitted a request for an extension until January 13, 2023. Daubert Motions (motions submitted prior to or during the trial that seeks to preclude the introduction of unqualified material) and associated exhibits were posted on the public docket with redactions in accordance with the court’s sealing order.

According to a report by Finbold, pro-XRP attorney John Deaton predicted that the final decision might be delivered in April or May of next year.

On behalf of the cryptocurrency-focused investment business Paradigm Operations LP, attorney Rodrigo Seira had also submitted a motion to appear pro hac vice.

Nicole Tatz, an attorney for the co-defendants in the complaint, filed a petition to withdraw elsewhere. In the filings, the attorney noted that additional Cleary Gottlieb Steen & Hamilton LLP lawyers will continue to serve as counsel of record for Ripple CEO Bradley Garlinghouse.

Intriguingly, the lawsuit has divided the cryptocurrency industry, with Cardano (ADA) creator Charles Hoskinson saying he would no again speak on Ripple and XRP-related subjects. According to Hoskinson, his decision is based on what he calls the XRP community’s relentless assaults.

A portion of the assaults surfaced after Hoskinson’s incorrect prediction that the matter would be resolved on December 15 came to light. Hoskinson said that the date was provided to him by persons familiar with the situation.

Also Read: Ethereum Fundamentals Appear Solid, But Analysts Anticipate Future Price Declines

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