The Ripple-SEC lawsuit has heated up owing to the latest motion filed by the SEC claiming the dismissal of “lack of fair notice and due process” defense put forth by Ripple. In the case of SEC v. Ripple, Ripple claims that the XRP token can be deemed to be a security asset. Although the CEO of Ripple, Brad Garlinghouse, has full faith in his legal team, there is only faint hope for Ripple as the Court might dismiss the defense of “lack of fair notice and due process” on the grounds of legal insufficiency.
Ripple contended that the SEC should have issued a warning to Ripple regarding the violation of the law before filing the suit at the Court. Ripple further put forth that the SEC ought to have issued guidelines or regulations before exercising the authority conferred upon the SEC by Congress. However, according to the Due Process clause or any other principles of law, there is no such legal obligation to issue warnings to market participants, and therefore such a defense should be dismissed. Recently, the co-founders of Ripple, Chris Larsen, and Brad Garlinghouse, have filed twin motions for the dismissal of the case against Ripple.
The US is the only nation that questions Ripple to be a security
The CEO of Ripple said that the only country that is questioning the status of Ripple as a security is the US. The financial system of the US is supervised by eight agencies, and none of these agencies have any issue with Ripple use except for the SEC. The rest of the US agencies recognize XRP as a digital commodity. Therefore, it is expected that the US Treasury might be able to outweigh the opinion of the SEC.
The attorney’s views on the case
Last year in December, the SEC had accused Ripple of raising more than $1.38 billion with the help of an unregistered crypto-asset offering. In the opinion of the Attorney of the XRP lawsuit, it is evident that the SEC has failed to maintain compliance to share internal documents as per the request made by Ripple.
The future of XRP after the lawsuit settlement
Ripple is seeking to list its shares publicly, and according to the co-founders, a potential IPO is already in the pipeline. However, Ripple is still fighting tooth and nail in the legal battle against the SEC of the US. After the lawsuit settlement, Ripple may also re-enter into a partnership with Moneygram to establish the IPO.
Ripple may seek IPO after the SEC settlement
Following the settlement of the Ripple-SEC lawsuit, Ripple might venture out into the public domain to seek an initial public offering to re-establish itself in the crypto community. According to the reports of Cointelegraph, the financial giant of Japan, the SBI Group, shall reap significant monetary benefits from the potential IPO of Ripple.