According to a motion filed in the United States District Court for the Southern District of New York, the parties are asking the court to enter summary judgment based on the evidence and arguments already presented.
A motion for summary judgment is usually filed when neither party has contested the facts and wants to avoid a lengthy trial.
Ripple attorney James K. Filan tweeted that Ripple’s current CEO Brad Garlinghouse and former Ripple CEO Christian Larsen have also filed for summary judgment.
defendants claimed The SEC does not have jurisdiction over XRP as the token was sold on foreign exchanges.
Ripple also argued that XRP is not a security under the Howey test because the XRP transfer did not include an investment contract.
Ripple General Counsel Stuart Alderotti said:
“The SEC cannot specify the contract for the investment (which the law requires) and cannot meet one prong of the Supreme Court’s Howey test.”
Ripple CEO Garlinghouse backed up Alderoty’s view by saying the SEC has no interest in enforcing the law. Instead, the regulator seeks to extend its “jurisdiction well beyond the powers conferred by Congress.”
Today’s filing makes it clear that the SEC has no interest in enforcing the law. They want to remake everything in an impermissible effort to expand jurisdiction far beyond the powers granted by Congress. https://t.co/ooPPle3QjI
— Brad Garlinghouse (@bgarlinghouse) September 17, 2022
The crypto community has a keen interest in the outcome of the incident
The cryptocurrency community has been closely following the lawsuit between the SEC and Ripple. Because the results could have a significant impact on how regulators classify crypto assets.
Currently, the SEC’s general thinking is that most crypto-assets are securities that should be registered under the Securities Act. His SEC Chairman Gary Gensler echoed this view before a committee of US Senators. He told reporters that digital assets that operate with a proof-of-stake mechanism could qualify as securities.
Several cryptocurrencies such as Cardano (ADA), Ethereum (ETH) and Solana (SOL) operate under this mechanism.
Separately, the commission has filed several lawsuits against digital asset firms like Coinbase over the list of assets that qualify as securities.