Ripple Avoids Questions on XRP Being Securities in Lawsuit Dismissal Motion
- The lawsuit also alarmed the SEC to investigate the project.
Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term startup Ripple has recently filed a motion to dismiss a lawsuit against it, which alleged that XRP falls under the category of unregistered securities.
The court filings uploaded by Coindesk shows that the attorneys of the firm defended the claims according to which the California-based company violated the United States securities law by selling XRP tokens. Per the motion, the plaintiff does not have the standing to file a complaint against the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term startup.
However, the company failed to respond to the arguments over the concerns of XRP being unregistered security.
“Purchasing XRP is not an ‘investment’ in Ripple; there is no common enterprise between Ripple and XRP purchasers; there was no promise that Ripple would help generate profits for XRP holders; and the XRP Ledger is decentralized,” the filing stated.
The case against Ripple was brought in by Bradley Sostack, a digital asset investor.
No arguments on not being securities
Ripple argues that the Sostack failed to bring a case against the company even after three years of the XRP token sale and thus lost his statute of repose.
“… under Plaintiff’s own allegations, Defendants offered XRP to the public throughout 2013 through 2015. Accordingly, the three-year statute of repose expired as of 2016 (three years after the sales cited in the May 2015 settlement) and in no case later than May 2018 (three years after the May 2015 settlement agreement in which ‘Defendants acknowledged that they had sold XRP to the general public,’ Complaint ¶ 25). The Securities Act claims in the Complaint, filed August 5, 2019, are therefore untimely and barred by the statute of repose,” Ripple’s attorneys stated in the filing.
Though Ripple is in denial to admit XRP’s categorization as securities, the allegations have alarmed the regulators and also a part of the crypto community. In addition, other concerns regarding the controlling of the XRP tokens by the company’s executives are also growing.
“They make twelve separate arguments for dismissal of the plaintiff's claims. Not a single one squarely addresses whether XRP is an unregistered security,” Jake Chervinsky, a crypto-focused lawyer, noted on Twitter.
Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term startup Ripple has recently filed a motion to dismiss a lawsuit against it, which alleged that XRP falls under the category of unregistered securities.
The court filings uploaded by Coindesk shows that the attorneys of the firm defended the claims according to which the California-based company violated the United States securities law by selling XRP tokens. Per the motion, the plaintiff does not have the standing to file a complaint against the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term startup.
However, the company failed to respond to the arguments over the concerns of XRP being unregistered security.
“Purchasing XRP is not an ‘investment’ in Ripple; there is no common enterprise between Ripple and XRP purchasers; there was no promise that Ripple would help generate profits for XRP holders; and the XRP Ledger is decentralized,” the filing stated.
The case against Ripple was brought in by Bradley Sostack, a digital asset investor.
No arguments on not being securities
Ripple argues that the Sostack failed to bring a case against the company even after three years of the XRP token sale and thus lost his statute of repose.
“… under Plaintiff’s own allegations, Defendants offered XRP to the public throughout 2013 through 2015. Accordingly, the three-year statute of repose expired as of 2016 (three years after the sales cited in the May 2015 settlement) and in no case later than May 2018 (three years after the May 2015 settlement agreement in which ‘Defendants acknowledged that they had sold XRP to the general public,’ Complaint ¶ 25). The Securities Act claims in the Complaint, filed August 5, 2019, are therefore untimely and barred by the statute of repose,” Ripple’s attorneys stated in the filing.
Though Ripple is in denial to admit XRP’s categorization as securities, the allegations have alarmed the regulators and also a part of the crypto community. In addition, other concerns regarding the controlling of the XRP tokens by the company’s executives are also growing.
“They make twelve separate arguments for dismissal of the plaintiff's claims. Not a single one squarely addresses whether XRP is an unregistered security,” Jake Chervinsky, a crypto-focused lawyer, noted on Twitter.