The Ripple-SEC legal battle has dragged on for more than two years. In December 2020, the SEC filed its lawsuit against Ripple and two of its executives, alleging that the $1.3 billion XRP was an unregistered security offering.
Fast forward to December 2022, when both parties made their final submissions seeking summary judgment in the case. The judge's verdict is now awaited.
Judge Torres made it very clear in the Daubert motion decision that the issue she must decide is whether Ripple sold XRP as a security despite the SEC taking broader positions at times in this litigation that seemed to suggest any sale of XRP was an investment contract or /1 https://t.co/HL1mclv8Xg pic.twitter.com/BrcHGAQlG9— bill morgan (@Belisarius2020) May 8, 2023
Bill Morgan, an XRP enthusiast and crypto lawyer, took to Twitter to share some key facts about the lawsuit as the judge's verdict is awaited.
According to him, ruling Judge Torres made it clear in the Daubert motion decision that the issue she must decide is whether Ripple sold XRP as a security, notwithstanding the SEC's broader claims.
In a separate tweet, Morgan also stated that the Ripple defense in the lawsuit does not "hinge" on the XRPL being decentralized or the degree of decentralization; it hinges on the application of the Howey test. He adds that the factual relevance of decentralization to the application of that legal test is yet to be decided.
Morgan reacted to CryptoLaw founder John Deaton and Marc Fagel, a former SEC lawyer, in which the latter asked if an asset initially ruled to be a security could be "expressly held" not to be a security on secondary markets.
Deaton responded that there has not been an investment contract case in 76 years that held an underlying asset itself to be a security.
According to him, not a single investment contract was found where there was no "privity" between the buyer and the promoter of the asset after examining all investment contract cases.
Ripple is expanding in Dubai
Ripple CEO Brad Garlinghouse has taken to Twitter to recount the giant strides that the company is making in Dubai.
As I just shared on stage at #DubaiFintechSummit, @Ripple is expanding in Dubai. With 20% of our customers based in MENA and clear regulatory regimes being developed, it’s no surprise that Dubai is emerging as a key global financial hub for crypto innovation to thrive. pic.twitter.com/9lWEtYECq7— Brad Garlinghouse (@bgarlinghouse) May 8, 2023
Garlinghouse stated that Ripple is expanding in Dubai with a growing customer base. He notes that 20% of Ripple customers are based in MENA.
He highlights that Dubai as becoming a key global financial hub for crypto innovation to thrive as clear regulatory regimes are developed.