As Ripple’s Liquidity Hub recently excluded XRP from its list of supported assets, concerns and speculation have been raised within the XRP community. To address these anxieties, Bill Morgan, a pro-XRP attorney, offered some prospects in Ripple’s legal strategy against the US Securities and Exchange Commission
Understanding the XRP exclusion
Bill suggests that XRP’s delisting from the Liquidity Hub might not be due to a negative assessment of the company’s prospects. Instead, he believes the decision is based on the nature of the product or commercial imperatives.
A few months after the lawsuit with the SEC began, Ripple had initially included XRP in the list of supported assets in the Liquidity Hub document. Bill highlights that with significant risk of Ripple losing the lawsuit, the company may have delisted XRP to avoid potential securities violation issues.
This strategy could allow Ripple to push the Liquidity Hub in the US market without users worrying. Also, a Ripple Liquidity Hub without XRP could serve as a good hedge in case the company loses the case against the SEC and diversify Ripple’s revenue streams.
Ripple’s response to SEC letter
Ripple’s legal team has filed a letter in response to the SEC’s supplemental authority letter supporting its motion for summary judgment. In the letter, Michael K. Kellogg, Ripple’s attorney, argues that the cited SEC case against Commonwealth Equity Services does not provide grounds to dismiss Ripple’s fair notice defense.
The SEC had referenced the Commonwealth case to justify rejecting Ripple’s fair notice defense and granting the motion for summary judgment. Ripple responded that the Commonwealth case lacked contemporaneous evidence to support the fair notice defense, while Ripple’s case has substantial evidence, including SEC filings and correspondence with third parties.
Potential Impact of the Verdict
John E Deaton, another pro-Ripple attorney representing XRP token owners in the ongoing lawsuit, shared his thoughts on the potential impact of the verdict. In an interview, Deaton stated that if Judge Analisa Torres rules in favor of the SEC, it could lead to numerous enforcement actions in the coming years.
This post Ripple vs. SEC: Pro-XRP Lawyer Shares Inside Information About Firm’s Legal Strategy
was published first on https://coinpedia.org/ripple/ripple-vs-sec-pro-xrp-attorney-shares-insider-insights-on-companys-legal-strategy/
