The post Ripple’s Legal Strategy Evolves as Form C Filed Amid SEC Dispute Over XRP Classification and Sales appeared on BitcoinEthereumNews.com.

Ripple Labs is pushing back against the U.S. SEC’s accusations with a new Form C filing, continuing the ongoing legal struggle over the status of XRP. This pivotal motion signals Ripple’s intent to challenge the previously established legal definitions surrounding cryptocurrencies and their classification under U.S. securities law. As Ripple’s Chief Legal Officer, Stuart Alderoty, stated on X, “We have a great record,” highlighting their strong position in the ongoing judicial review. Ripple Labs files a Form C in its legal battle against the SEC, contesting the classification of XRP and seeking a reevaluation of key court decisions. Ripple’s Form C Filing: Key Developments in the Legal Battle Ripple Labs’ recent submission of Form C marks a significant moment in its legal tussle with the U.S. SEC. This document serves as a pre-argument statement for the upcoming appeal, outlining the basis on which Ripple challenges the previous decisions rendered by the Southern District of New York court. Central to this appeal is the application of the Howey test to XRP transactions, which classifies whether an asset is a security based on the expectation of profits from the efforts of others. Understanding the Howey Test in Context The Howey test evaluates four criteria: an investment of money, in a common enterprise, with an expectation of profits, primarily from the efforts of others. Ripple’s challenge revolves around the assertion that the court misapplied this test, especially regarding XRP’s sales to institutional investors. Ripple insists that its transactions do not fit the criteria for securities, asserting that their processes lacked reasonable expectations of profits derived from Ripple’s actions alone. Ripple’s Arguments: Fair Notice and SEC’s Clarity In addition to questioning the Howey test’s application, Ripple’s appeal also emphasizes the principle of fair notice. The company argues that the SEC’s guidance has been “inconsistent”…

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Filed under: News - @ October 25, 2024 8:27 am