The lawsuit between Ripple (XRP) and the SEC has long been throbbing in the cryptocurrency sphere. The SEC, known as America’s quintessential regulator, seemed in a position of strength from the start of the process. However, a new piece of data breaks its course. A speech attributed to a former SEC official is controversial and strongly draws the attention of the judge in charge of the case. The extent that this might take are still unknown, but it seems obvious that the consequences for the rest of the process are inevitable.
- A dubious conference call
- A difficult step backwards for the SEC?
- Ripple (XRP) builds partnerships despite its cause
A dubious conference call
It all starts with a conference call that could be described as sensitive. It happened between former SEC official William Hinman and his legal department four years ago. According to Judge Netburn in charge of the case, the recordings resulting from this call can demonstrate the intentions of the SEC, and therefore need to be clarified. The goal is to determine what advice former manager Hinman received and, more importantly, for what purpose.
The SEC defends itself by saying that such advice was just lambda legal advice, with no particular purpose. Also according to the SEC the only topic discussed was that of the application of laws relating to the security of cryptoassets, this “in a very legal speech”. A statement that clearly did not convince Judge Netburn. The latter broke the SEC argument in the middle of the trial. He asked the SEC to explicitly confirm what he had just heard, which was that former director Hinman’s purpose was not to obtain simple legal advice, but rather to ensure his apparent consistency. The SEC then replied in the affirmative.
A difficult step backwards for the SEC?
Benefiting from an unrivaled reputation and authority in the United States, the SEC generally occupies a position of strength in its various lawsuits. This is the case with the Ripple (XRP) lawsuit, at least since it was opened. Lately, this turnaround has echoed everywhere in the press.
When excerpts from the conference call between the SEC and its former director, William Hinman, were made public, the course of the trial was swayed and its direction changed. Now, the lights aren’t just on Ripple anymore. The smallest acts, exchanges, and even intentions of the famous SEC begin to be peeled and questioned. According to experts from the legal world and the world of cryptocurrencies, this is a serious step backwards for the SEC. The objectivity and transparency of his intentions are carefully evaluated by the judge. However, this clearly restores Ripple’s edge.
Until then, the SEC had managed to ban the participation of the holders of the token at the trial, no doubt fearing the influence it would have. However, this reversal of the situation could lead the judge to reconsider the matter, and the holders of the token could be open to trial. This would only accentuate the decline of the SEC and shake the future of this affair.
Ripple (XRP) builds partnerships despite its cause
As a general rule, a lawsuit is not synonymous with good publicity. Legal problems tend to alienate collaborators, investors and partnerships. Surprisingly enough, Ripple appears to be an exception to the rule. Since the start of its lawsuit against the SEC, Ripple hasn’t had to complain of colossal losses in terms of partnerships – quite the opposite. Officially, Bexs Pay is the entity that has managed over 54 million Nubank customers in terms of cross-border payments. However, Bexs Pay has integrated RippleNet since 2017.
This forms a very broad partnership for Ripple (XRP), whose business continues to thrive despite the ongoing lawsuit. This is just the beginning. Several other remittance companies have already contacted Ripple to start partnerships. In addition to this aspect, it is also interesting to note that Ripple intends to make it public as soon as the process is finished. Coincidence? Hard to believe.
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