The Securities and Exchange Commission (SEC) is notorious for being a stingy opponent. The regulatory agency launched a massive lawsuit against the Ripple Labs executives for violating the 1933 Securities Act of the United States. It is alleged that the upper brass of Ripple Labs has raised about 1 billion by trading unregistered securities.
This year, Ripple Labs saw some victories when names like James Hogan, John Deaton were added to the mix. When SEC first announced the lawsuit, XRP was delisted from 54 different crypto exchanges. However, after the recent victories, the altcoin not only found its place back, but exchanges like Coinbase and Binance also started to offer it on their platforms. SEC has now filed another counter-motion in the court of law to keep the lawsuit going.
Ripple Labs does not seem to get out of Pickle
For the time being, XRP is ranked 5th on the top global crypto charts. However, its executives are not only battling a huge fight with the court of law, but they keep getting in social media bouts from time to time. A few weeks ago, Brad Garlinghouse made some abrasive comments about Bitcoin. Now Larson is making some fantastical remarks that Bitcoin should consider moving to a proof of stake consensus.
Some similar questionable suggestions were broadcasted by New York Times and direct the ridicule and mockery of the crypto community towards the paper. Many experts also questioned the credibility of the paper after reading these views, although Larson has compared Bitcoin with Ethereum. Ethereum is the silver crypto that is aiming to introduce a new upgrade of consensus switching.
New SEC Chief has not Opened up about his Stance on the Matter yet
The appointment of Gary Gensler as the new SEC chief raised the hope among many that Ripple Labs lawsuit would be retracted. However, the former MIT blockchain professor has not made any remarks about the matter. SEC has recently filed a motion against Ripple Lab’s letter. The letter pointed out to the law the SEC is sending MOUs to foreign exchanges for discovery.
Ripple Lab’s lawyers also called this tactic an intimidation technique to scare away the non-American partners of Ripple Labs. Now the SEC has addressed Hon. Magistrate Sarah Netburn to deny this request and let SEC collect reasonable evidence. The court filing on this issue is yet to be seen. In the meantime, Ripple Labs is busy managing its legal expenses and exchanges evacuations by issuing massive amounts of XRP tokens.