Brad Garlinghouse and Chris Larsen seek to have their XRP claims dismissed by hiring lawyers, but the SEC has given the Second Circuit a January 2025 deadline for key briefs in the appeal process. The request was made for the 15th. The SEC recently filed an appeal against Garlinghouse and Larsen, including charges of securities law violations.
In the ongoing legal battle between Ripple Institute and the U.S. Securities and Exchange Commission (SEC), Ripple executives Brad Garlinghouse and Chris Larsen have taken strategic steps to dismiss the SEC’s claims against Ripple. Ta.
The legal dispute between Ripple and the SEC that began in 2020 reached a critical stage in July 2023. At the time, District Judge Annalisa Torres ruled that Ripple’s institutional sales of XRP were considered an offering of unregistered securities.
However, she concluded that sales to private customers did not qualify as securities under Howie’s test standards. In response to this ruling, the SEC filed an appeal last week challenging certain aspects of the judge’s decision and seeking to overturn it.
Ripple executives take action on SEC allegations
Garlinghouse and Larsen hired key attorneys, including Cleary Gottlieb’s Matthew Solomon, known for his expertise in securities law. They aim to refute charges by the SEC alleging that Ripple’s XRP tokens were sold as unregistered securities. In parallel, the SEC asked the Second Circuit to set a January 15, 2025 deadline for key briefs related to the appeal. This indicates that the SEC is preparing to continue pursuing regulatory action against Ripple.
John Deaton, an attorney representing XRP holders, filed as an unaccredited attorney in the case. Although he will be able to participate in discussions, his formal representation in the appeals process may be limited.
Additionally, Paul, Weiss, Rifkind, Wharton & Garrison has officially ceased representing Chris Larsen. The change came on the same day the Court of Appeals notified the co-founders of their failure to file the required notice of appearance in the legal proceedings.
Following Paul Weiss’ resignation, Larsen will be represented by the same legal team that previously represented Ripple’s CEO. This new team includes attorneys from Cleary Gottlieb; The legal team, including attorneys from Cleary Gottlieb, previously scored a major victory in an SEC lawsuit, securing the dismissal of all claims against Ripple CEO Brad Garlinghouse.
Meanwhile, Ripple is challenging the watchdog’s definition of an “investment contract.” The company argues that for an investment contract to be valid, there must be a formal contract in place, post-sale obligations from the seller, and profits dependent on the seller’s efforts.
Following these legal developments, the price of XRP rose 1% within 24 hours to trade at around $0.5255. Furthermore, the previous day’s XRP trading volume increased by 61% to settle at $972 million, suggesting increased interest and activity among traders.
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