December 5, 2022

Representatives of Ripple demanded to declare SEC allegations insolvent

The company's lawyers drew the court's attention to the fact that the position of the regulator reflects a significant regulatory uncertainty about digital currencies.

Lawyers who represent Ripple's interests incourt, demanded to declare the charges of the US Securities and Exchange Commission (SEC) against the company insolvent. This was announced by attorney James Filean on Twitter. He also published a petition that Ripple's representatives sent to court.

The document says that the position of the regulatorreflects significant regulatory uncertainty about digital assets. The lawyers also pointed to the fact that the SEC failed to prove that the defendants were aware of the need to register XRP tokens as securities before selling them.

On July 16, the court rejected the SEC's petition withthe requirement not to use the testimony of the former employee of the commission, William Hinman, who served as director of the corporate finance department of the SEC in 2018. Hinman said in 2018 that Ethereum is not a security.

The financial regulator accused Ripple of selling $ 1.3 billion in unregistered securities under the guise of XRP tokens in December 2020.