Ripple cites former SEC Commissioner ‘Crypto Mom’ in call for dismissal
A latest in the Ripple vs Securities and Exchange Commission lawsuit had the defendants lawyers submit a supplemental letter on Monday to support their request for dismissal of the case
In the letter, the team note a July 14 statement by SEC commissioners Hester “Crypto Mom” Peirce and Elad Roisman to hold back on any action against Blotics, the operator of the once-popular cryptocurrency website Coinschedule.
The lawyers of Ripple CEO Brad Garlinghouse and co-founder Chris Larsen raised attention to the commissioners’ criticism that the enforcement action against Coinschedule did not make it clear which tokens the site promoted were securities. There also was ambiguity about how tokens are actually defined.
The Ripple representation wrote in their filing:
“The Public Statement confirms the Individual Defendants’ arguments that there was (and remains) significant regulatory uncertainty regarding when digital assets may be classified as securities by the SEC.”
The supplemental letter also read:
“The SEC’s aiding and abetting claim requires that ‘it show that the Individual Defendants knew or recklessly disregarded that Ripple’s offerings and sales of XRP required registration as securities and that those transactions were improper.’”
In the case against them where the SEC alleged Coinschedule secretly received compensation from digital asset issuers it was profiling at times of its initial coin offerings (ICO’s), Blotics agreed to a settlement. This included a penalty of $153,434 and an agreement to stop violating the anti-touting provisions.
Peirce and Roisman wrote following the settlement.
“There is a decided lack of clarity for market participants around the application of the securities laws to digital assets and their trading, as is evidenced by the requests each of us receives for clarity and the consistent outreach to the Commission staff for no-action and other relief.”
More clear: Imagine you are the Judge deciding whether Ripple had “Fair Notice” it was violating the law and you look in the file and see a letter from 2 out of the 5 SEC heads stating essentially that “Not only Ripple didn’t have Fair Notice, NO ONE had or has Fair Notice.” ?? https://t.co/SQejXo7lfA
— Jeremy Hogan (@attorneyjeremy1) July 19, 2021
Just a few days ago, U.S. District Court Judge Sarah Netburn, who is assigned to the case, had denied a SEC motion to keep out the deposition of a former SEC official, William Hinman. The SEC had argued that Ripple’s request to depose was unreasonable and unrelated to the case.
The post Ripple cites former SEC Commissioner ‘Crypto Mom’ in call for dismissal appeared first on iGaming.
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Author: Peter Siu