Showing posts with label SEC. Show all posts
Showing posts with label SEC. Show all posts

Ripple intends to resolve the SEC dispute by November 2022.

As the highly publicized lawsuit between Ripple (XRP) and the Securities and Exchange Commission (SEC) progresses, more information has become available.


According to a recent document released in a tweet by attorney Jeremy Hogan, the blockchain payment corporation anticipates the litigation to be resolved between August 26 and November 18, 2022.


Ripple has requested that the ongoing class action be rescheduled from the previously agreed date of August 26, 2022 to November 18, 2022, according to the letter, clarifying that:

"The parties agree that there are economies in having some portions of the SEC action precede key dates in this action due to the overlap of factual and legal problems between this case and the SEC action."

The reduction of the issues in the dispute as a result of the postponement, according to the blockchain business, would lessen the burden on the parties, expedite discovery in the case, and perhaps reduce the load on the court.

Mr. Hogan also stated that Ripple expects to win the SEC case in September or October, after which the class action would be dismissed owing to collateral estoppel, which prohibits a party from relitigating an issue settled in a previous litigation, even if the issue is related to a distinct claim.

The SEC v. Ripple story is coming to a close.

In December 2020, the SEC filed a complaint against Ripple and two of its executives for allegedly selling over $1.3 billion in unregistered XRP between 2013 and 2020.

The agency presented two legal memos from law firm Perkins Coie to the blockchain startup as proof. Ripple had requested legal guidance on a number of concerns related to the issuing of its digital tokens, and the memoranda were issued in response.

Instead of utilizing the memoranda as an example of proactive compliance, the SEC used them "as a sword, or as a sledgehammer," according to the Ripple General Counsel.

The corporation has also filed an opposition to the SEC's Motion for Partial Reconsideration and Clarification, as well as Judge Netburn's Deliberative Process Privilege (DPP) order, characterizing it as an attempt by the SEC to obtain a "do-over."

On February 28, Ripple's CEO Brad Garlinghouse took to Twitter to debunk reports that Russia was using XRP to circumvent SWIFT and other restrictions. Mr. Garlinghouse declared unambiguously that RippleNet complies with international law and the restrictions imposed by the US Treasury's Office of Foreign Assets Control (OFAC).

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The SEC has rejected a Bitcoin ETF on the spot market.

The SEC denied a Bitcoin spot ETF, citing the risk of fraud, sending BTC prices down for a brief period. The US Securities and Exchange Commission denied a Bitcoin spot ETF on Friday, only one month after permitting a Bitcoin futures exchange-traded fund to trade on the New York Stock Exchange, propelling BTC values to new all-time highs.

a brief summary

  • The SEC issued a long-awaited ruling on Nov. 12 rejecting Van Eck's petition to list the Van Eck Bitcoin Trust ETF. Van Eck is a worldwide ETF investment management organization. BTC's price dropped to $62,353 after the rejection order was issued, but it quickly recovered to around $64,500 within hours.
  • Allowing the fund to trade would be incompatible with "prevent[ing] fraudulent and manipulative actions and practices" and "protect[ing] investors and the public interest," according to the SEC's disapproving order.
  • A Bitcoin spot ETF would follow the price of actual Bitcoin, whereas a Bitcoin futures ETF would follow the price of Bitcoin futures contracts.
  • The decision came as no surprise. "The SEC has been consistent in its assessment that a spot Bitcoin ETF does not safeguard investors against fraud or manipulation," said Todd Rosenbluth, head of ETF and mutual fund research at CFRA Research, an independent financial research organization. That remains a significant obstacle to overcome, and it seems probable that no spot ETF will be approved in the United States for some time."
  • ProShares Bitcoin Strategy ETF, a Bitcoin futures ETF, had started trading on the NYSE a month before, propelling the price of BTC to an all-time high of US$67,000 the next day.
  • So why would the Securities and Exchange Commission accept a derivative product but not one that tracks genuine Bitcoin? "The underlying market in the crypto area is not as regulated as derivatives," Alma Angotti, partner and global legislative and regulatory risk head for global consulting firm Guidehouse, She claims that a Bitcoin spot ETF would have less costs, making it cheaper and more appealing to investors, but the SEC is hesitant to allow such direct investment due to the volatility of Bitcoin values.

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The SEC has been successful in obtaining recordings of Ripple's internal meetings.

A federal judge has granted the Securities and Exchange Commission's motion to compel Ripple to produce audio and video-taped recordings of its internal meetings, siding with the SEC. Magistrate Judge Sarah Netburn has ordered Ripple to turn over audio and video-taped recordings of its internal meetings, siding with the SEC.


Netburn adds in her Nov. 8 ruling that the corporation must make such measures as soon as possible so that the discovery date is not postponed:

In light of the discovery's conclusion, Ripple is directed to proceed with such efforts as soon as possible.

The parties must meet and consult to determine which specific recordings are most responsive to the plaintiff's claims. Ripple agreed to undertake "a reasonable search" for pertinent records after originally resisting the request.

The defendants, on the other hand, accused the regulator of reversing its previous stance in October, claiming that their request for recordings was "plainly unreasonable."

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The SEC's course of action in the XRP lawsuit will have this consequence.

The court approved the SEC's request to extend the discovery deadline until January 14, 2022, disappointing many investors looking for a quick conclusion in the SEC versus Ripple Labs dispute.

John Deaton, Counsel for Amici Curiae – or "friends of the court" – who represented thousands of XRP holders, was one of those dissatisfied.

The crypto lawyer discussed the case and speculated on what may happen on the Paul Barron Network.

Will the SEC Reach an Agreement?

While winning and losing a case appear to be black-and-white outcomes, a settlement has its own set of repercussions.

According to Deaton,

"If the court rules that XRP is not a security and that the SEC did not provide fair and adequate notice to the market – if they win – Gensler's jurisdictional approach to crypto will come to an end. Because the SEC would only have jurisdiction over a pure ICO kind of offering at that time..."

He continued,

"So it's feasible that the SEC settles with Ripple so that they can still pursue other cryptocurrencies..."

Both fear and hope are present.

Deaton was especially worried by the SEC's opinion that all XRP, even those in the secondary market, are securities, putting aside the SEC's problems with Ripple as a firm. However, when it came to his particular horror, Deaton remarked,

"...my biggest concern is that the SEC will dismiss the case because they are afraid of a defeat, and then it will be as if the previous year never happened."

On a brighter side, Deaton speculated that XRP holders would benefit from the court extension. He said that Ripple would be able to collect proof from anyone in possession of the digital asset.

However, the crypto lawyer emphasized that money was not the most crucial factor. Instead, he believes Ripple's efforts and the court's decision might lead to additional SEC litigation against other businesses.

Congress has been contacted.

On November 3, Ripple CEO Brad Garlinghouse emphasized the need of Congress "taking the lead" in offering recommendations and clearing the air on crypto policy in the United States. Deaton, for one, started the "Connect to Congress" initiative. This enabled XRP holders to contact senators and congressmen to express their concerns about their rights and cryptocurrency policies.

"Because you and I both know...Congress is the solution," Deaton added. It will have to resolve this issue in the end."

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In December, wXRP will be released on the Ethereum network.

Despite its regulatory issues, the XRP network looks to be evolving. Wrapped XRP (wXRP), courtesy of Wrapped.com, will be going to the Ethereum (ETH) blockchain next month if all goes according to plan. The move will allow XRP holders to utilize their native tokens to interact with components of decentralized finance, or DeFi, such as executing smart contracts for use in borrowing and lending, and trading for altcoins. At the moment, the network can only send, receive, and keep XRP.


Wrapped tokens are digital currencies that are kept safe in a digital vault and run on their own blockchain. Wrapped Bitcoin, which runs on the Ethereum blockchain, and Wrapped Ethereum, which converts ETH to the ERC-20 standard, are two notable wrapped coins. Hex Trust would offer custody for wXRP, which would have a 1:1 exchange ratio with XRP.

Ripple's chief technical officer, David Schwartz, stated in a tweet earlier this week that wXRP will be "multichain." While Ethereum is still the preferred network for releasing wrapped tokens, its hefty gas prices have sparked some debate among crypto fans. The average gas price per Ethereum smart contract execution has climbed to $184, according to Ycharts.com. Users may be able to wrap their XRP on chains with much reduced gas rates thanks to multichain connectivity.

Ripple Labs aims to challenge traditional financial institutions through reduced costs and faster settlement times, such as the Society for Worldwide Interbank Financial Telecommunication. To do this, RippleNet, the company's corporate software for allowing cross-border money transfers, was developed. However, XRP is not utilized for transactions, and it is just used to offer liquidity.

The US Securities and Exchange Commission (SEC) sued Ripple and two of its executives in December with selling XRP to investors for $1.3 billion in unregistered securities offerings between 2010 and 2019. Ripple's legal team has no intentions to settle with the SEC and is convinced that Gary Gensler, the regulatory agency's head, would dismiss the case.

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The SEC aided Ethereum in overtaking XRP as the second most valuable cryptocurrency, according to Ripple's CEO.

The CEO of Ripple says that his firm has been handled unfairly, giving Ethereum the upper hand. Brad Garlinghouse, the CEO of Ripple, has been speaking out on the health of the crypto market and regulations, and a resentment of the financial regulator's approach to Ethereum looks to have surfaced.

On Thursday, during the DC Fintech Week virtual conference, Ripple CEO Brad Garlinghouse said that Ethereum has received governmental approval, allowing it to exceed his company's XRP coin.

The Securities and Exchange Commission (SEC) of the United States has been investigating Ripple (XRP) for concerns that it is an unregistered securities. Ripple requested information from the SEC under the Freedom of Information Act in January, asking why it didn't consider ETH to be a security. A district court authorized the corporation to depose a former SEC officer who determined in 2018 that ETH was not a security six months later, in July.

Garlinghouse plainly believes that his company has been treated unfairly, and that Ethereum's subsequent success is owed, at least in part, to the SEC's more favorable approach. It is influencing the market, he said, adding:

"XRP was the second most valuable digital asset just a few years ago." ETH has definitely skyrocketed since it became evident that the SEC has given it a pass, and that clarity has helped.”

In late December 2017, XRP was the second most valuable crypto currency by market capitalization. It has since dropped to eighth place, whereas Ethereum has remained in second place since then.

Garlinghouse also said that the SEC has been active in its anti-crypto stance, citing recent moves against his business and Coinbase as examples. In response to Ripple's legal dispute with the Securities and Exchange Commission, he stated that the SEC professes to be safeguarding customers, but:

"Nearly 50,000 XRP holders in the United States are attempting to sue the SEC for 'protecting them.'"

A US district court decided earlier this month that individuals who own the company's XRP coin may not be named as defendants in the litigation. The SEC's request to extend the date for completing discovery in its continuing case against Ripple Labs and its officials was granted, and the deadline has been moved out to January 14, 2022.

Any additional delay in settling this lawsuit, according to Ripple, will "cause severe harm to the defendants' and XRP holders' interests." The court accepted this, but ruled that the "extra time requested by the SEC will have no impact on the case's scheduling."

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FRIETSHOP Wetteren Restaurant in Belgium now accepts XRP.

As crypto acceptance grows, the Ripple-affiliated XRP cryptocurrency is now accepted as payment at the Belgian restaurant FRIETSHOP Wetteren. According to a message from the Belgian restaurant FRIETSHOP Wetteren's Twitter account, the eatery began accepting XRP as payment for meals on Monday.


The SEC's legal action has delayed XRP adoption.

@MackAttackXRP, a well-known XRP community member, posted the tweet. As a result, XRP adoption continues. CoinDesk revealed this summer that Paraguay's Universidad Americana will take XRP, as well as the two most popular cryptos – Bitcoin and Ethereum – as payment for educational courses and scientific degrees.

The legal complaint filed by the US Securities and Exchange Commission against Ripple Labs, as well as two of its highest-ranking officials – the CEO and co-founder – in December of last year seems to have hindered XRP adoption.

XRP trading was suspended by many crypto exchanges in January as they turned their backs on the cryptocurrency. Coinbase, Binance U.S., Bittrex, and Bitstamp are among these exchanges. The XRP community has been sending out regular tweets to Coinbase, requesting that the currency be restored on the platform, but the token has yet to be reinstated. Brian Armstrong is a Ripple and XRP supporter.

Coinbase CEO and co-founder Brian Armstrong, as previously reported by U.Today, has responded with a series of tweets. He stated his support for Ripple and XRP in the legal battle with the SEC in them. The Securities and Exchange Commission of the United States threatened to sue Coinbase in August over a loan product the crypto exchange was about to introduce.

The new software was designed to allow users to lend their USDC to other users in exchange for interest. The SEC, on the other hand, approached Coinbase and threatened to prosecute the platform, claiming that the new LEND app was an unregistered securities (the same charge lodged at Ripple over XRP).

Following that, Armstrong tweeted that the regulator has permitted a number of other crypto companies to offer identical products, but only threatened to prosecute Coinbase. Coinbase, he claims, is willing to follow any clear regulation or set of guidelines in this area. The SEC, on the other hand, has made no such offer and is dismissing Coinbase's queries about why the new crypto lending tool may be an unregistered security.

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Coinbase CEO Expresses Support for Ripple and XRP Amid SEC Battle

The XRP Army thinks that Brian Armstrong may be hinting towards the cryptocurrency's relisting. Coinbase CEO Brian Armstrong has previously expressed support for Ripple's battle against the United States Securities and Exchange Commission.


Armstrong says in a series of recent tweets that the company's case is doing "better than anticipated."

Armstrong emphasized that attacking the cryptocurrency business and causing harm to investors is "politically undesirable."

The chairman of the biggest American exchange then restated Ripple's oft-repeated argument that the SEC harms customers rather than protects them:

The irony is that they are being attacked by the same individuals they are ostensibly safeguarding.

Rumors of XRP's relisting get fresh life

Armstrong's statements naturally rekindled speculation about Coinbase relisting XRP.

The exchange suspended XRP trading on Jan. 19 after the SEC's filing of a lawsuit against Ripple, precipitating a significant price collapse.

Rumors of a Coinbase relisting began circulating on social media last month when XRP trading pairs began appearing on the company's mobile app, but it turned out to be a glitch.

Despite its legal difficulties, XRP has remained robust, with crypto tycoon Mike Novogratz recently stating that the cryptocurrency's value has quadrupled since the government filed its case.

Coinbase's run-in with the Securities and Exchange Commission

Ripple began partnering with Coinbase after Armstrong publicly chastised the Securities and Exchange Commission for threatening to sue the major exchange over its yet-to-launch loan product.

Even though the corporation complied with the SEC's requests and shelved the product in issue, it seems as if the company has not buried the hatchet with the mighty regulator.

Coinbase requested earlier this month that the agency be replaced with a new cryptocurrency-focused regulator, stating that the regulations enacted in the 1930s were unsuitable for the "technological revolution."

The exchange must persuade Congress to enact laws establishing the drastically different regulatory environment it envisions.

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SEC v. Ripple: What's Next for XRP Holders? With new "friends of the court" status, what's next for XRP holders?

The continuing legal fight between Ripple Labs and the Securities and Exchange Commission of the United States has taken a new turn. U.S. District Judge Analisa Torres has granted XRP token holders the status of amici curiae, or "friend of the court," according to the most recent update in the case. Individuals who own the company's XRP coin cannot be named as defendants in the case, according to the court. However, they would be able to help the court in presenting legal problems related to the SEC v. Ripple case thanks to the aforementioned award.



Judge Torres recently denied a “motion to intervene as defendants” brought by John Deaton, an attorney representing a group of XRP investors. Holders who join the complaint, according to the court, will “compel the SEC to initiate enforcement action against them.” She went on to say that this would "unnecessarily prolong the lawsuit" much further.

Instead, Judge Torres decided that they may serve as court buddies. This implies that the court would authorize them to give advice or information but not engage in the lawsuit process. The judgment went on to say,


“The court finds that amici status strikes a fair balance between enabling movants to express their interests in this case and allowing the parties to maintain control of the litigation.”


Needless to say, the XRP community's response was overwhelmingly favorable. For example, James K. Filan emphasized the importance of this judgment by tweeting that XRP holders had filed a petition to intervene earlier in March. They argued at the time that they wanted to safeguard their interests because if the agency won the lawsuit, they would lose billions. Deaton's daughter, who owns XRP, also said that the token lost $15 billion in income after being delisted from major cryptocurrency exchanges.

However, Ethereum co-founder Joseph Lubin, in a 4 October interview, agreed with the regulatory body and its discriminatory handling of XRP. According to reports, he said,

“[The SEC] may have valid arguments in the instances that are now being debated. I don't think the SEC is attempting to stifle innovation.”


This was in reaction to a blog article by John Deaton. He has already expressed his dissatisfaction with Ripple's handling in contrast to Ethereum. Ethereum, according to the lawyer, received a "regulatory free pass" for its own ICO.

Taking to Twitter, he responded to the executive once again, saying,

“Are you serious?” I inquire. Hester Peirce, often known as Crypto Mom, is an SEC commissioner who has been vocal about the SEC's lack of transparency and its effect on innovation. However, @ethereum Do you think Joseph thinks the SEC is doing a good job? Joe needs a new public relations consultant.”

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The SEC has extended the deadlines for four Bitcoin ETFs by 45 days.

The SEC on Friday extended the decision deadlines for four Bitcoin ETFs, including Global X Bitcoin Trust. The Securities and Exchange Commission (SEC) of the United States has extended the deadline for four Bitcoin exchange-traded funds (ETFs) by 45 days, citing the need for more time to determine whether to approve the 19b-4 applications.


Four Bitcoin (BTC) ETFs — Global X Bitcoin Trust, Valkyrie XBTO Bitcoin Futures Fund, WisdomTree Bitcoin Trust, and Kryptoin Bitcoin ETF — have had their clearance dates pushed back to Nov. 21, Dec. 8, Dec. 11, and Dec. 24, respectively.

The SEC stated the following in their official statement:

“The Commission believes it is appropriate to set a longer deadline for taking action on the proposed rule change so that it has enough time to examine the proposal and any comments.”

Invesco, a New York-based financial company, teamed up with Galaxy Digital Funds to create a Bitcoin ETF named Invesco Galaxy in mid-September. The ETF security product, which is now pending clearance, has the potential to be listed on major US exchanges, with prospective customers guaranteed that all private keys would be carefully protected by a variety of technical and physical deterrents.

The SEC's announcement of the first Bitcoin EFT is generally anticipated to boost the asset's technical indicators as a flood of conventional investors joins the market. According to iShares, the overall value of global commodities exchange-traded products is $263 billion. This number does not include mutual funds, which may bring the entire value closer to $500 billion.

The SEC may approve a Bitcoin ETF by the end of October, according to Bloomberg ETF experts, with ProShares' Bitcoin futures ETF being the most probable contender. The duo also recommended that the regulatory body “allow several at once to avoid giving away the first-mover advantage.”

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The SEC is cornered by Ripple on the status of Ether as a security.


Ripple has filed a “motion to compel responses to interrogatories” with the Securities and Exchange Commission, in which they inquire if Ether is a securities. This line of questioning, as Attorney Jeremy Hogan points out, is a "AMAZING" approach because it weakens the SEC's case regardless of the answer supplied.

SEC Chairman Gary Gensler refused to answer the same question at the Aspen Security Forum last month. His remark backs up the notion that the SEC doesn't want to be exposed any more.

The SEC, however, is baffled about wiggling out of a response now that the issue has been established in a court setting.


The Ripple Defense argues that there was no fair notice.

In December of last year, just before Christmas, the SEC filed a lawsuit against Ripple. They claimed Ripple had sold $1.3 billion worth of stocks illegally since 2013.

Ripple's legal team has prepared a defense on numerous fronts during the discovery phase that followed, which is still ongoing, the most important of which is the fair notice defense.

It makes the case that Ripple assumed XRP, Bitcoin, and Ether were equal in the eyes of the SEC.

Ripple assumed the same thing about XRP because former SEC Director William Hinman had previously stated that neither Ether nor Bitcoin met the criteria for securities. Furthermore, Ripple claims they were unaware of any violations of applicable securities law since the SEC did not provide fair warning otherwise.

During the discovery process, it was discovered that Hinman's approval of Ether/Bitcoin was merely a personal view and should not be interpreted as the regulator's position.

As a result, this admission has sparked a can of worms. Why were they permitted to operate without hindrance if Ether is a security? Or, if not, why is Ripple being singled out by the SEC?

If they do, they are damned; if they don't, they are damned.

In response to the "move to compel responses to interrogatories" filing, Hogan points out that adopting a formal position on Ether's securities classification puts the SEC in a tough position, regardless of how they respond.

“If the response is no, Ripple has the opportunity to compare XRP to Ether. And, as far as we know, Ethereum was the first cryptocurrency to hold an ICO...

For the SEC, “Yes” is not a politically viable response.”

A comment along the lines of the Ether's status is unknown might, on the other hand, support Ripple's fair notice defense.

How could Ripple know they were breaking securities legislation by selling XRP tokens if the SEC can't establish whether Ether is a security?

“For Ripple, the “Is Ether a security?” question is a win, win, or win,” says Hogan.

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Decentralization Uniswap is being investigated by the Securities and Exchange Commission (SEC).

According to unidentified people acquainted with the case, the US Securities and Exchange Commission (SEC) is looking into the no-order-book decentralized exchange Uniswap.

According to the Wall Street Journal, the SEC is investigating Uniswap Labs, the company that created the platform, for information on how it is used and marketed. The probe is still in its early stages and may not result in any official claims of misconduct.

According to a Uniswap spokeswoman, the company is "dedicated to complying with the laws and regulations regulating our sector, as well as providing information to regulators that will assist them with any inquiry." The Securities and Exchange Commission (SEC) has declined to comment.

This is the first known probe of defi with the SEC, and it comes just weeks after the new head, Gary Gensler, began office.

Despite the fact that there is no high court judgement or legislative act that provides the SEC clear jurisdiction, Gensler is prioritizing his extremely limited budget for defi, despite the fact that the former Goldman Sachs banker is too busy with many other essential reforms at the SEC.

That's especially true when it comes to something like Uniswap, which has been forked before, demonstrating the platform's decentralization.

As a result, establishing responsibility in this case, given that Uniswap is similar to Wikipedia in that anyone may add new assets and liquidity, should be a challenging task that courts will protect under the first amendment because code is speech.

Uniswap Labs could also buy an SEC-registered corporation, as Coinbase did, and be compliant, but they still won't be totally compliant because anyone can add any asset.

The only way they can comply is to effectively become a centralized exchange in terms of their own front interface, which would very certainly result in more forking of the platform and a drop in liquidity.

As a result, it's possible that Gensler prefers to bully behind closed doors rather than take formal action, given that his agency has no limits on insider trading in cryptos, unlike stocks, over which they have appropriate control.

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As Ripple attempts to uncover XRP holdings of SEC employees, the SEC vs. Ripple case is taking an unexpected turn.

The SEC's case against Ripple is picking more steam, with both sides filing papers this week to compel the other side to produce documents that will be crucial to the case.


Ripple filed a motion on Friday asking the SEC to reveal whether or not its workers were permitted to trade XRP and other digital assets. The request gave the SEC until September 3rd to respond, according to attorney James K. Filan of Filan LLC, who is following the case between the SEC and Ripple.

The judicial order follows prior talks between Ripple and the Securities and Exchange Commission (SEC) on the subject, which resulted in no resolution. The move aims to bolster Ripple's claim that the SEC failed to provide it with adequate notice that selling XRP would result in the sale of an unregistered security.

The motion, filed on behalf of Ripple Labs Inc. and its co-founders Bradley Garlinghouse (Ripple CEO) and Christian A. Larsen (Ripple executive chairman), seeks to establish evidence that the SEC granted its employees clearance to trade Bitcoin, Ether, and XRP. As a result, the motion attempts to show that the SEC has “not established or imposed” any rules prohibiting their employees from trading XRP until January 16, 2018.

Despite the fact that the SEC's response date has yet to arrive, the regulators have moved forward with their lawsuit, filing a motion to force Ripple to "provide relevant video and audio-taped records" of meetings. In a motion filed on Monday, the SEC said that during a deposition earlier this month, they learned of the tapes they were seeking from a "important former Ripple employee."

The SEC's action is unsurprising, given it has been anticipated that they may be approaching the issue from a marketing standpoint rather of a technical one.

The SEC had previously filed a motion to obtain information about Ripple's internal communications. Slack, a messaging and task management platform utilized by businesses and used by Ripple, might be a powerful weapon in the SEC's arsenal. The SEC's marketing strategy is backed up by a footnote in the motion stating that the messages they seek access to are from members of Ripple's marketing team, members of the XRP marketing team, and members of Ripple's financial team.

He goes on to say that these individuals were more interested in whether XRP was “marketed” as a security or stock option in the company to raise funds, rather than whether it was technically a security or not. In a recent analysis, Hogan indicated that the SEC might be willing to give up its fair notice position in order to bring Ripple to justice on the securities marketing charges.

The lawsuit appears to be nearing a conclusion, and some experts anticipate that both parties will reach an agreement soon.

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Ripple is demanding that the SEC employees' XRP holdings be made public.

Ripple recently filed a motion to compel the US Securities and Exchange Commission [SEC] to provide its procedures and information surrounding its employees trading in cryptocurrencies such as Bitcoin, Ethereum, and XRP. Ripple's fair notice defense will be strengthened by this move.

Ripple wants the SEC to give, according to attorney James K. Filan's filing.

“...anonymized papers representing trading preclearance decisions for XRP, bitcoin, and ether, or alternatively, aggregated information.”

In addition, the motion filing mentioned records linked to SEC staffers' XRP holdings.

“Defendants also want certifications of SEC workers' XRP holdings, either with identifiable information redacted or in aggregate form. On July 8, July 15, August 18, and August 25, we met and spoke with the SEC on this subject, but no progress was made.”

Ripple's prior demands were met with the "SEC's unwillingness to release crucial material" critical to the defendants' understanding of the SEC's policy on digital assets, including whether or not the SEC allowed its own employees to trade the disputed digital asset, XRP.

The court had previously allowed Ripple's motion to compel the SEC to reveal its digital asset trading policies in June. Following that, the SEC issued a policy titled "Ethics Guidance Regarding Digital Assets" on January 19, 2018. The SEC did not view digital assets as securities until January 19, 2018, according to Ripple, therefore its workers were “free to buy, sell, and keep XRP without any restrictions from the SEC.”

The defendants further stated in the above-mentioned document that,

“This evidence strongly supports the Defendants' defenses in this case and refutes the SEC's assertions. The fact that the SEC did not prohibit its own employees from selling or buying XRP, despite its long-standing prohibition on employees engaging in securities transactions without preclearance, indicates that the SEC had not concluded, prior to at least January 2018, that sales and offers of XRP were securities transactions.”

Furthermore, despite the fact that the SEC maintained a "Prohibited Holdings" list of assets that are subject to the SEC's securities trading embargo, BTC, ETH, and XRP were never included on this list. The SEC's "Watch List," which identifies assets that are subject to case-by-case reviews rather than blanket prohibitions, only added XRP after April 13, 2018.

“Any SEC employee transactions in XRP after April 13, 2018, were examined on a case-by-case basis – again through the preclearance process,” according to the statement. The SEC, according to Ripple, has refused to give this essential material in the case and is now attempting to compel it through the courts.

The SEC has until September 3rd to respond to this motion, according to the court. But what if the SEC refuses to cooperate once more?

As one Twitter user pointed out in response to Filan's tweet,

“The SEC has complete discretion over whether or not to comply with the court's order. After a certain amount of time has passed, the judge will impose sanctions against them. If the SEC continues to ignore the ruling, the case may be dismissed.”

The crypto industry is waiting for the fact discovery deadline on August 31st, as Ripple and the SEC continue their back-and-forth. Furthermore, the litigation appears to be far from being resolved, as the court has already granted the parties' combined request to postpone the depositions of Ripple's CEO and Founder, Brad Garlinghouse, and Chris Larsen.

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Update on the XRP lawsuit: The court has granted Ripple and the SEC's request for an expert discovery extension.

Judge Sarah Netburn approved Ripple and the SEC's request to extend the expert discovery deadline. James K. Filan was the first to break the news, noting that the court has also allowed an extension for filing pre-motion letters in the case of a summary judgment. However, no deadline has yet been set.

The lawyer wrote on Twitter,

“#XRPCommunity #SECGov vs. #XRP #Ripple The application for a time extension was granted by the court. The deadline for submitting pre-motion letters for summary judgment has been extended, but no deadline has been set until the motions to strike and dismiss are resolved.”

Earlier this week, the two sides submitted a combined motion to postpone the depositions of Ripple executives Brad Garlinghouse and Chris Larsen until after the Fact Discovery deadline. This was done owing to the “unexpected illness of an attorney important to the Larsen deposition,” according to the complaint.

While the parties agreed on a schedule for the depositions in September, the court has yet to set a date. However, “granting of applications for extensions of time are regularly ruled on in this fashion,” according to the attorney. He explained that this is known as a Docket Order.

Filan continued,

“Adjourned sine die” implies that no specific date has been set for filing pre-motion letters or Statements of Material Facts since such dates will be determined by the Court's decision on the pending Motion to Strike and Motions to Dismiss.

The Court has yet to make a decision on the outstanding motions. Only when these decisions have been taken can more documents be filed.

However, there is no way of knowing how long it will take. Furthermore, there have been rumors that the next hearing in the case, planned for August 31, will be open to the public.

It's unclear what the SEC and Ripple have discovered so yet. According to onlookers, both parties have some substantial pieces of evidence to support their respective positions. Unfortunately, depending on how the privilege problem plays out, these details may or may not be made public.

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Employees of the Securities and Exchange Commission (SEC) were allowed to trade in XRP and Ether. Ripple is curious about the situation.

Ripple has filed a motion with Magistrate Judge Sarah Netburn to compel the US Securities and Exchange Commission to produce additional documents that reflect its digital asset trading policies in order to determine whether SEC employees traded XRP prior to the issuance of the formal investigation order.

The troubled firm wants to know if SEC workers were permitted to trade cryptocurrencies such as XRP, Ether, Bitcoin, and others.

Ripple is also looking for annual certifications that show the agency's staff members' personal bitcoin holdings. It is open to receiving such data in an aggregated manner.

According to the defendants, their requests are "neither burdensome nor disproportionate":

Our request is neither excessive nor out of proportion to the case's requirements. The requested information should be easily available, and it appears that the SEC's counsel has previously evaluated it during our meet and confer procedure.

Trading policies in the lead up to an investigation

The securities watchdog had not put any limits on bitcoin trading for its own personnel until January 2018. According to the company's lawyers, this information supports the defendants' "fair notice" position, which is based on the idea that the SEC hadn't concluded whether the Ripple-affiliated cryptocurrency was a security in time to alert market participants.

Furthermore, the SEC's list of outlawed digital currencies does not include Bitcoin, Ether, or XRP.

The agency refused to say if its employees were permitted to trade XRP until March 9, 2019, the date the formal order of investigation was issued, claiming that such information was irrelevant.

The defendants also want to know if former SEC official William Hinman's infamous April 2018 remark, in which he declared that Ether was not a security, had any impact on the staff's trading activities.

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SEC v. Ripple: Court Schedules Telephonic Conference to Discuss Privileged Documents



A new telephonic conference is planned between Ripple and the SEC to discuss the pending privilege dispute, Magistrate Judge Sarah Netburn of the U.S. District Court for the Southern District of New York has scheduled a new telephonic conference between Ripple and the U.S. Securities and Exchange Commission (SEC) that will take place on Aug. 31 at 12:00 p.m.

The parties will discuss the company's forthcoming move to compel the regulator to release a trove of private documents that the defendants think are essential to their "fair notice" defense.

The SEC, according to Ripple's lawyers, neglected to express its views on digital assets to the general public. This is why it is attempting to compel the regulator to provide internal documents outlining the watchdog's opinions on Bitcoin, Ethereum, and XRP.

As a result, the agency has asserted the deliberative process privilege, which protects information about how a government agency arrived at a specific policy or conclusion.

The court maintained its earlier decision on document production in early May. The SEC must produce its interagency memoranda addressing the aforementioned assets, with the exception of its staff's informal communications, however documents can be excluded on the grounds of privilege.

Ripple has taken advantage of the situation to point out that the SEC has incorrectly classified 40 documents as privileged.

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The SEC Chair calls DeFi a "misnomer" and suggests that further regulations are on the way.

Chairman of the Securities and Exchange Commission (SEC), Gary Gensler, has reaffirmed his position on decentralized finance (DeFi) laws. In a recent interview with the Wall Street Journal, Gensler called the word DeFi a "misnomer" and discussed his overall position on the sector.


Since Gensler's confirmation as SEC Chair by the US Senate, the crypto sector has been expecting the regulator to take a more open stance on cryptocurrencies and blockchain technology. Gensler taught a cryptography course at MIT and appears to be well-versed in the field.

His mandate, on the other hand, has already asked Congress for more authority to oversee cryptocurrencies and has labeled the industry the "Wild West" of finance. In the interview, Gensler questioned DeFi's decentralized character, emphasizing the need for further oversight from the SEC and other US regulators. According to the Chairman,

These (DeFi) systems make it possible to do things that are decentralized in some ways but centralized in others.

Furthermore, Gensler mentioned a project that "rewards participants with digital tokens," most likely referring to the governance token airdrops offered by several DeFi protocols. He feels that these incentives and their distribution may be in violation of US securities legislation and that they "should be regulated." According to Gensler,

There is still a core group of people that not only write the software, such as open-source software, but also manage it and charge fees. In the heart of it all, there's an incentive system for the promoters and sponsors.

This could have an impact on DeFi teams, referred to as "promotors" and "sponsors" below. The possibility of increased rules has already had an impact on the DeFi sector, as reported approximately a month ago.

As a result, Uniswap Labs and other teams used their user interface to restrict access to specific tokens. Many teams could opt out of their U.S.-based operations and relocate to more friendly jurisdictions if Gensler's SEC is given more authority.

Is the DeFi Sector the Public Enemy No. 1?

Gensler is far from the lone government figure who wants tougher rules. Senator Elizabeth Warren of the United States has asked the Securities and Exchange Commission to clarify its authority over these asset classes, according to Bitcoinist. Senator Warren is a vocal opponent of cryptocurrencies, decentralized financial systems, and the crypto business.

According to legal expert Collins Belton, Gensler's remarks on decentralized finances could be directed at "whales" and "insiders" with "concentrated ownership" of a protocol. Belton continued, "

(...) concentrated ownership can lead to the exact problems that securities rules are designed to address. Reducing insider voting concentration is really a net gain for DeFi in the long run because it enhances decentralization, so this isn't necessarily a negative thing.

The legal expert did not rule out the possibility that the Commission will target all investors, regardless of whether or not they have influence over the protocol. Finally, Belton noted, officials can either push DeFi out of the country or implement a "sensible regulation."

According to DeFiPulse, the total value locked (TVL) throughout the DeFi protocol is $79.6 billion. This measure hit an all-time high in 2021, when the industry was valued at about $88 billion. This indicates that, despite market volatility, the sector is expanding and becoming more relevant.

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Intel Corporation reveals a $780K investment in Coinbase

Intel Corp, the world's largest chipmaker, has announced a minor stake in bitcoin exchange Coinbase. The company, which is the world's largest semiconductor chip producer by revenue, reported that it owns about 3,014 shares of Coinbase's Class A common stock. Intel disclosed its position in a quarterly regulatory report to the Securities and Exchange Commission in the United States (SEC).


These shares, according to reports, are worth more than $780,000. Intel Corporation first invested in Coinbase in the second quarter of 2021, around the time the exchange went public through a direct listing in April. Coinbase's valuation soared to $112 billion on its first day of trading. It was referred to as the most valuable U.S. trade at the time, according to reports.

The most recent additions to Coinbase have resulted in significant milestones.

Coinbase has continued to extend its customer trading choices, most recently adding five new assets to its platform on August 12. Request (REQ), TrueFi (TRU), Quickswap (QUICK), Wrapped Luna (WLUNA), and Axie Infinity were among the assets, all of which were Ethereum tokens (AXS).

REQ and TRU, two of those tokens, both reached new milestones around the same time. TRU, in particular, set a new all-time high of $1.04 on the same day, while REQ touched a yearly high of $0.33. According to the analysis, their Coinbase listings may have aided in their success.

TRU's price had dropped to $0.61 at the time of publication, according to statistics. Meanwhile, REQ continued to rise over $0.33, reaching a high of $0.41 on August 13th, according to data. However, it has fallen in price since then, with a price of $0.25 at the time of writing.

The United States government has adopted Coinbase software. Coinbase isn't just making inroads with big-name tech companies like Intel. To that list, add federal law enforcement agency. According to recent reports, the US Immigration and Customs Enforcement (ICE) department purchased digital forensics software built by the exchange. ICE joins government organizations such as the Internal Revenue Service (IRS) in utilizing crypto-analysis tools created by and for the crypto industry.

According to reports, the forensics program will cost $29,000 and will have a one-year anticipated performance time.

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U.S. Congressman Says Ripple v. SEC Resolution Could Have "Significant" Implications for Crypto Market

The verdict in the Ripple case could be a turning point for the industry. U.S. Congressman Tom Emmer indicated in a recent interview with Thinking Crypto that the Securities and Exchange Commission's action against Ripple will have "major" repercussions for the whole cryptocurrency business.


He did not, however, speculate on the outcome of the high-profile legal matter because the court must determine the dispute between the two parties.

Enforcement measures, according to the Minnesota congressman, are not the greatest method to establish regulatory clarity.

Just months before the SEC alleged the reverse in its scathing complaint, Emmer, one of the most crypto-friendly congressman, stated that XRP was not a security in August 2020.

First and foremost, my perspective is crystal clear. Isn't it true that XRP isn't a security?

The battles for discovery are still going on.

The SEC has demanded more than one million Slack chats from Ripple workers as part of the continuing pre-trial discovery phase.

Some of the messages that the agency did receive deal with sensitive topics like speculative XRP trading and the token's regulatory status.

Despite generating a fortune by selling the token without disclosing that fact to holders, CEO Brad Garlinghouse, who is suspected of aiding and abetting the allegedly unlawful sales alongside co-founder Chris Larsen, previously informed the public that he was "very, very, very long" on XRP.

The SEC, on the other hand, appears to be on trial in the case, with defendants recently convincing the court to allow Willian Hinman, the agency's former senior official, to testify.

This isn't your normal SEC case.

The notion that the outcome of the Ripple lawsuit could influence the entire industry's destiny is not new.

Many people who have followed the high-stakes case from the beginning have reached the same conclusion.

The SEC offered Ripple a settlement, but the business refused to accept the terms and instead chose to fight.

Even with the new presidential administration, the agency is sticking to its guns. Emmer slammed SEC Chair Gary Gensler's recent comments on tightening bitcoin laws, calling them "extremely disappointed."

As the case moves closer to trial, the SEC is expected to battle tooth and nail to avoid a rare and humiliating defeat.

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