If the SEC does not resist any longer and announces this result, the case may be settled in favor of Ripple (XRP) immediately.
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The United States Securities and Exchange Commission ( SEC ) entered into a war with Ripple Labs last December, and the process has come so far with mutual claims. However, with this development, it may be possible to conclude the case. So, will we see a new ATH with the conclusion of the SEC case, which is the biggest obstacle to the XRP price ?
🔥Ripple Corners SEC
Significant Development in Ripple Case
Both sides are making serious efforts to refute mutual claims. Of course, this situation caused the litigation process to be prolonged. However, with the last step taken by Ripple Labs, it has taken a serious advantage to conclude the case in their favor.
It compelled the SEC to explain how the Howey Test has been applied to nearly all Ripple transactions in XRP over the past eight years. Trying to corner the SEC on this issue, Ripple wants to see how the previously disclosed theory applies to them. Judge Netburn 's pressure on the SEC was inconclusive, if you recall. SEC , Howey 's how the process was applied to Ripple's explanation so far.
Describing this as baseless, the SEC 's defense is as follows:
“As an institution, we see that this demand is aimed at weakening our claims. With irrelevant and evasive methods, Ripple wants to slow the process.”
However, the SEC, which will have to explain this soon, is entering a new process.
ℹ️What is the Howey Test?ℹ️
This test was developed by the SEC and aims to measure whether an asset is a security. The key factor is whether investors expecting profits are investing in a company or asset. These gains, which are in no way under the control of the investors, should depend on the efforts of the entrepreneurs.
As before, Ripple Labs now wants to see how the SEC applies this test to their companies. Saying that this test result is essential for their defense, Ripple Labs lawyers apply to the court for a fair trial.
🔥Ripple Corners SEC
Company officials are waiting for the SEC to explain how XRP holders are expecting a profit.
The court finds Ripple Labs justified in this regard . Moreover, the SEC has yet to say whether assets such as Bitcoin and Ethereum are securities. However , these views, which will greatly affect the Ripple case, are not disclosed by the SEC, despite the pressure of the court. The SEC seems to be cornered on this one. So in the near future, the case may be settled in favor of Ripple, and in the worst-case scenario, Ripple Labs can get away with this case with reasonable compensation.
Finally, Judge Sarah Netburn wanted to examine the SEC's documents in detail. However, on many issues, including discussions about the nature of XRP and ETH, the SEC failed to produce documents.