- Ripple has refuted the SEC’s assertion that its digital asset, XRP, lacks intrinsic value.
- Ripple argues that XRP serves as a bridge asset in cross-border financial transactions.
- If the SEC requests an interim appeal, Ripple plans to challenge several recent decisions involving XRP sales to financial institutions.
In response to the U.S. Securities and Exchange Commission’s (SEC) recent interim appeal, Ripple has challenged the agency’s assertion that XRP lacks intrinsic value. Stuart Alderoty, Ripple’s Chief Legal Officer, urged supporters of XRP to pay attention to the company’s latest legal actions against the SEC.
Specifically, he highlighted a specific part of Ripple’s opposition where Ripple refutes the SEC’s claim about XRP’s value. Legal expert and XRP advocate Bill Morgan has disseminated portions of Ripple’s rebuttal to the XRP community.
My favorite too. I have being banging on about the SEC comment that XRP has no inherent value all week. Glad the Ripple attorneys addressed it. No such finding by the judge, not relevant to the Howey test anyway, and irrelevant to whether XRP use gives it value, which it does. https://t.co/tAOuYPspfp pic.twitter.com/Yz7EVpj5oX
— bill morgan (@Belisarius2020) September 2, 2023
Previously, the SEC had stated in its application for interlocutory appeal that XRP was merely a string of code. The regulatory body even said they weren’t seeking permission to challenge the court’s finding on XRP’s value.
Ripple emphasized XRP’s role as a bridge asset in cross-continental financial transactions. The company pointed out the court’s precise language, stating that XRP does not meet the Howey standards for being an investment contract. Hence, the court concluded that XRP is not an investment contract, debunking the SEC’s claims.
Additionally, Ripple has laid out its plans for cross-appeals, should the SEC’s request for an interim appeal be granted. The company aims to challenge several recent decisions, including one that involved the sale of XRP to financial institutions.
Ripple has also vowed to contest the SEC’s attempts to reclassify the sales of XRP to On-Demand Liquidity (ODL) clients post-complaint. This sets the stage for a legal showdown that could have far-reaching implications for the crypto industry.
To sum it up, Ripple is not backing down. The company uses a multi-pronged approach to defend its digital assets and business practices. With its strong rebuttal and plans for cross-appeals, Ripple is sending a clear message to the SEC and the crypto community, that it’s ready for battle.
As the legal drama unfolds, all eyes are on Ripple and the SEC. The outcome of this case could set a precedent for how digital assets are regulated in the United States, making it a landmark case in the annals of financial technology law.
