A New York court’s decision to deny Ripple’s (XRP) motion has brought a new twist to the legal battle between the SEC and Ripple. Ripple Labs, the company behind XRP, had previously tried to prevent the US Securities and Exchange Commission from sending letters of intent to foreign securities regulators.
According to the management of Ripple Labs, these letters of intent were intended to intimidate foreign business partners of Ripple Labs. The SEC’s investigations in the other countries should be suspended, according to the request of Ripple’s lawyers. The findings of the investigation to date should also be communicated to Ripple.
This application has now been rejected by Judge Sarah Netburn. Because according to the “Multilateral Memorandum of Understanding”, an international legal agreement of many tax authorities, the SEC is allowed to investigate together with foreign authorities. In the case of Ripple, this means defeat for the time being.
The legal battle between the SEC and Ripple Labs has been going on for a long time. The SEC filed a lawsuit on December 22, 2020. The allegation is to have sold unregistered shares. Crucial to this lawsuit is how differently the SEC and Ripple Labs define stocks.
So the question arose as to whether XRP as a cryptocurrency has the same status as Bitcoin, for example, or whether it is a security of a company that manages and issues it centrally. The litigation caused the course of XRP to run through capers. In April 2021, things actually looked pretty good for Ripple: They were able to achieve some successes in court.
Ripple’s defense strategy was to get the same recognition of XRP as a cryptocurrency like Bitcoin or Ethereum. These positive prospects have meanwhile caused the price of XRP to rise by 140%. XRP had also been spared from the rapid price drop in the last few days. XRP is currently trading at $ 1.17.
Aside from the legal dispute, Ripple Labs continues to work on its vision of fast and cheap international transfers. A new partnership was only recently announced. We are now working on a transfer system for North African countries together with the National Bank of Egypt and the LuLu Exchange from the United Arab Emirates.
A representative of the Egyptian National Bank said:
Egypt is among the five countries in the world that receive the most remittances from their overseas citizens. Given the important role remittances play in the Egyptian economy, the National Bank of Egypt is constantly striving to develop and improve the infrastructure for this line of business.
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