Ripple has engaged a securities expert, and its legal team is contesting a crucial point.
This week, Ripple saw two significant legal developments. It has hired a new counsel and is challenging an important allegation made by the Securities and Exchange Commission in the United States (SEC)
Specialist Joins the Legal Case Against Ripple
As James. K. Filan revealed today that Nicole Tatz of Cleary Gottlieb Steen & Hamilton LLP joined Ripple’s legal team.
The announcement has gotten a mixed reaction. On the plus side, Tatz has experience with government investigations, with a focus on securities lawsuits. She has represented clients in front of various agencies, including the Securities and Exchange Commission of the United States.
That seems she’d be a good fit for Ripple, which has been accused by the SEC of conducting an unregistered securities offering.
On the other hand, others have speculated that the addition of a new counsel to the case might result in the legal processes being extended.
Ripple Defends Fair Notification
In the most recent development in the case, attorneys for Ripple contended that the SEC did not offer adequate notice before the complaint.
According to the SEC, Ripple has been provided a reasonable warning that its XRP sales might be unlawful. In addition, it highlighted a study by Cornerstone Research that detailed several past infractions.
Lawyer James K. Filan argues in a new SurReply that the SEC relied on a document that did not include applicable to Ripple’s circumstance. He claims that the company conducted an ongoing token sale rather than a one-time ICO, despite the Cornerstone Report focusing solely on the latter.
“Of more than 70 cases cited in Cornerstone Report, outside of Ripple, none alleged violation of § 5’s registration requirement for sale of digital assets outside the context of ICO,”Filan explained.
The Securities and Exchange Commission (SEC) has responded to Ripple’s assertions. Ripple has been accused of mischaracterizing its fair notice claims, according to the company. Fair notice, it noted, does not necessitate accurate factual proof.
When will the case be over?
The Securities and Exchange Commission (SEC) filed a complaint against Ripple in December, alleging that the XRP coin sales violated securities laws.
According to various estimations, the case might be resolved by September 2021 at the earliest. However, according to less optimistic forecasts, the legal process will not be completed until 2023.
Despite the lawsuit’s inconvenient consequences, Ripple is betting big on its business possibilities. The company claims to have a significant presence in the Asia Pacific market, despite many exchange delistings in the United States. In addition, after the litigation is resolved, Ripple intends to have an initial public offering (IPO).