Skip to content

Ripple v. SEC case update as of June 5, 2023

Ripple v. SEC case update as of June 5, 2023

While the cryptocurrency sector is waiting for the June 13 release of the controversial documents in the legal standoff between the United States Securities and Exchange Commission (SEC) and blockchain firm Ripple, an important hearing awaits that could have an effect on the case, as well as the future of crypto assets.

As it happens, the US Congress’ House of Representatives Committee on Agriculture has announced a hearing called ‘The Future of Digital Assets: Providing Clarity for Digital Asset Spot Markets’ for June 6, which Ripple’s Senior Director of Global Policy Susan Friedman said was important for crypto in her tweet on June 1.

“While the upcoming June 13 HFSC hearing is an important one for crypto, the one being held next week by House Committee on Agriculture is equally so. Congressman Glenn Thompson has been a steadfast supporter of the call for clarity in this space.”

Among other speakers, the meeting will hear Paul Grewal, the chief legal officer (CLO) at crypto trading platform Coinbase, who has also shared his anticipation regarding the June 6 hearing in his tweet on June 2, adding that the crypto market regulation bill from congressmen Patrick McHenry and Glenn Thompson “lays a strong foundation for regulatory jurisdiction and definitions, BD rules, and consumer protections.”

Secondary market sales

More recently, pro-XRP lawyer Jeremy Hogan shared an excerpt from the US Supreme Court case ‘Slack v. Pirani’ that came out last week and which he described as “analogous to XRP in the secondary market if/where the XRP was sold as an ‘investment contract.’” 

As he added, “XRP doesn’t magically maintain status as a ‘security outside the context of the initial ‘contract,’” highlighting the passage in the excerpt which says that:

“Section 11 of the 1933 Act requires a plaintiff to plead and prove that he purchased securities registered under a materially misleading registration statement. (…) The majority of courts have for years held that §11(a) liability extends only to shares that are traceable to an allegedly defective registration.”

Furthermore, replying to a commenter wondering about the effect of the above case on the Ripple lawsuit, Hogan explained that he expected to see it in a Ripple brief on damages or in the Order by Judge Analisa Torres if she addresses secondary market sales.

Meanwhile, the XRP token, which is at the center of the lawsuit, was at press time changing hands at the price of $0.54, up 1.66% on the day and gaining 11.32% across the previous week, as it advanced by a solid 15.64% on its monthly chart, according to the data retrieved on June 5.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Read Next:

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.