The SEC‘s proceedings against Coinschedule, according to Ripple‘s legal team, demonstrate regulatory ambiguity.
Ripple’s legal team has filed a new defense against the Securities and Exchange Commission in the United States (SEC). The purpose of this submission is to utilize recent SEC remarks as proof of regulatory ambiguity.
The Securities and Exchange Commission (SEC) may have expressed regulatory uncertainty.
The SEC fined Coinschedule and its parent firm Blotics $200,000 last week. Commissioners Hester Peirce and Elad Roisman of the Securities and Exchange Commission later spoke about the case’s conclusion.
Peirce and Roisman made many points in their comments that imply that securities rules are unclear. They specifically emphasized that the only certainty they see is that individuals are unsure how to comply with the appropriate laws and regulations.
The Commissioners also pointed out that the massive number of criteria and lack of weighting undermined the guidance’s intended clarity. Applying regulations to an entirely new token offering does not always result in apparent answers.
They also saw a distinct lack of clarity in how securities rules are applied. They also pointed out that using the Howey Test—a set of criteria for determining whether assets are securities—isn’t entirely apparent.
If Ripple‘s legal team is accurate, the SEC broke Section 17(b) of the Securities Act, which requires courts to take judicial notice of facts that are not subject to reasonable dispute and facts from reliable sources.
Ripple‘s most recent court filing, published on Twitter by lawyer James Filan today, has a comprehensive list of pertinent remarks.
The US Securities and Exchange Commission (SEC) initially charged Ripple in December 2020, alleging that the company’s continuous sales of the XRP cryptocurrency constituted an unregistered securities offering.
The SEC also charged Ripple executives Brad Garlinghouse and Chris Larsen with complicity in the sales. The executives’ request to reject the accusation that they intentionally participated in misconduct was filed today. The CEOs’ legal team initially filed an appeal to dismiss this claim in March.
The two Ripple executives appear to be the only ones named in today’s complaint. However, Ripple seemed to be unconcerned by it. The lawsuit is currently underway, with an expected conclusion in early 2022.