The legal battle between the United States Securities and Exchange Commission (SEC) and Ripple Inc. seems to take a significant twist following a recent discovery by Sam Lyman, a renowned contributor at Forbes. According to Lyman, the SEC may have taken on more than it could handle in its lawsuit against the cross-border payment firm.
Per Lyman, the SEC is hell-bent on proving that most cryptocurrencies are securities and must abide by the principles guiding security assets in the United States. However, past statements, internal documents, and public speeches resurfaced, and they all seem to contradict SEC’s present regulatory stance on crypto assets.
Lyman maintained that the SEC is conscious of the contradictions between its present and past principles guiding security and non-security assets, resulting in its recent attempt to conceal the details of some of its crucial judgment materials, especially Hinman’s docs.
The SEC may have bitten off more than it can chew in its campaign against XRP.
— Sam Lyman (@SamLyman33) May 21, 2023
In a twist of the legal procedure, Judge Torres, the federal judge in charge of the legal face-off between Ripple and SEC, had earlier ruled that the documents must be readily available for the public as she may rely on the details of the papers for the final court rulings. Judge Torres’s declaration was a welcome development for the XRP community and the crypto industry.
Legal Expert’s Insight
John Deaton, a well-established XRP lawyer, has pointed out that the ongoing lawsuit between SEC and XRP goes beyond enacting the U.S. regulatory rules on security assets. Deaton noted that both parties involved in the court case would have arrived at a common ground if SEC had directed its lawsuit on specific sales completed by Ripple.
Forging ahead, Deaton stated that the lawsuit came as a weapon with suspicious motives. The legal practitioner also pointed out that even the previous SEC Commissioner, Joe Grundfest, could not find any basis for filing a lawsuit against Ripple.
In conclusion, Deaton commended the least expected support from the XRP community members since the onset of the legal battle. According to Deaton, about 75,000 XRP community members stood against the U.S. SEC regulatory principles, which could have taken the SEC aback.