Citing the SEC fine on Coinschedule, Ripple has filed a motion asking the court to dismiss the charges against company CEO Brad Garlinghouse and co-founder Chris Larsen.
Recently, Coinshedule, along with its parent company Blotics, was fined $ 200,000 for violating the Securities Act.
Statements by SEC commissioners indicating regulatory uncertainty:
In a recent submission divided On Twitter of the defendant James K. Filan’s attorney, Ripple mentioned statements by SEC commissioners Hester Peirce and Elad Roisman. On the outcome of the proceedings against Coinshedule, Peirce and Roisman had stated:
“There is a definite lack of clarity for market participants about how securities laws apply to digital assets and how they are traded.”
In another statement, they said the only certainty they had was that people had questions; how the relevant laws and regulations apply to them.
Opinion on the clarity of the Howey test[done to evaluate the asset if it is a security or not] notes Commissioners:
“The application of the Howey test is not crystal clear.”
They admitted that the market should be regulated by clear regulatory guidelines, claiming:
“Providing clear regulatory guidance and taking enforcement action against those who ignore it is a better approach than the approach we have taken so far and which is embodied in dispute resolution today.”
If Ripple can convince the court, the SEC could be subject to violation of Article 17b of the U.S. Securities Act.
The lawsuit matters to the entire crypto industry:
It’s not the first time Ripple has insisted on regulatory uncertainty. In an interview with the General Counsel of Protocol Ripple, Stuart Alderoty accused the SEC of creating a “regulatory quagmire”. He had also stated that the lawsuit they are fighting not only affects Ripple, it has implications for the entire market.
Alderoty had also claimed that no single party has the ability to develop a regulatory framework for digital currencies and that all relevant parties should be involved.