Ripple files motions to dismiss lawsuit as XRP blasts to new three-year high
Just before the weekend, Judge Sarah Netburn ruled that Ripple executives Brad Garlinghouse and Chris Larsen’s did not have to disclose their personal financial records. After what was probably a weekend-long celebration, the Ripple pair have now filed twin motions to have the SEC lawsuit dismissed.
The memorandum of law that Garlinghouse’s counsel Matthew Solomon filed, said:
“The second claim fails because the AC does not plausibly allege that Mr. Garlinghouse knew or was reckless in not knowing that Ripple was violating Section 5 or was acting improperly.”
Salomon then conflicted the SEC’s theory of Garlinghouse acting “recklessly”. This would be too high a bar to prove and was contradicted and disproved by his own actions. As the SEC pointed out, “[he] was focused on ensuring that XRP did not even appear to have the features of a security.”
Salomon added:
“The thrust of the SEC’s allegations seem to be that Mr. Garlinghouse was aware that some digital assets – not XRP – could be considered securities, but that he took steps to ensure that XRP could not be perceived as a security. But recognizing and seeking to avoid a risk is not reckless – it is prudent.”
No grounds for the charges
With regards to the first claim, Garlinghouse’s counsel argued that it fails the test of law. There seems to be no clarity whatsoever that the XRP sales or personal offers happened in the United States. Furthermore, “the registration requirements of the Securities Act apply only to domestic sales of securities.”
Chris Larsen’s attorney made similar arguments in the memorandum of law accompanying his motion to dismiss the lawsuit. Just like the aforementioned, he believes that the SEC’s charges against his client cannot stand before law,
The SEC will have until May 14 to counter both motions.
It is no secret that both parties are unwilling to settle on the issue. It is a case in which the global crypto community is eagerly awaiting a decision. While a ruling unfavourable to Ripple might have widespread consequences to the industry, a favourable decision is expected to give the industry another boost. Ripple’s native token XRP has boomed in the past week over favourable developments. Monday it got blasted to a new three-year high of $1.60 where it is currently trading around.
It seems that Garlinghouse is keeping his word. He earlier had said that “XRP is going nowhere“.
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Source: igaming
