According to motions filed before the U.S. District Court of the Southern District of New York, the two parties are asking the court to give a summary judgment based on the evidence and arguments already presented.
Summary judgment motions are usually filed when either party does not have a contention with the facts of the case and wants to avoid a long trial.
Ripple Attorney James K. Filan tweeted about the new developments saying that Ripple’s current CEO, Brad Garlinghouse, and former CEO, Christian Larsen, also filed for summary judgment.
The defendants have argued that the SEC has no jurisdiction over XRP since the token was sold on overseas exchanges.
Ripple also contended that the XRP is not a security under the Howey test as its transfer does not involve an investment contract.
Stuart Alderoty, Ripple’s general counsel, said:
“The SEC is unable to identify any contract for investment (that’s what the statute requires); and cannot satisfy a single prong of the Supreme Court’s Howey test.”
Ripple CEO Garlinghouse corroborated Alderoty’s view, saying the SEC was not interested in applying the law. Instead, the regulator is trying to expand its “jurisdiction far beyond the authority granted to them by Congress.”
Today’s filings make it clear the SEC isn’t interested in applying the law. They want to remake it all in an impermissible effort to expand their jurisdiction far beyond the authority granted to them by Congress. https://t.co/ooPPle3QjI
— Brad Garlinghouse (@bgarlinghouse) September 17, 2022
The Crypto community is keenly interested in case outcome
The crypto community is keenly watching the case between the SEC and Ripple as its outcome could hugely affect how the regulator can classify crypto assets.
Presently, the prevailing line of thought at the SEC is that most crypto assets are securities that should be registered under securities law. SEC chairman Gary Gensler reiterated this view before a committee of US senators. He told reporters that digital assets operating on the proof-of-stake mechanism could qualify as a security.
Several crypto assets, like Cardano (ADA), Ethereum (ETH), Solana (SOL), etc., operate under this mechanism.
Apart from that, the commission has filed several lawsuits against digital assets companies like Coinbase over listing assets it qualified as securities.