After a long battle that took place between Ripple Labs and the US SEC, it seems that things are finally close to settling. As things seem to be going in favor of Ripple, therefore, it has made the final statement, requesting the court to make the final judgment.
Ripple’s Claim for XRP
With the situation going in favor of Ripple, it has decided to change its strategy. The legal teams at Ripple have changed their stance against the US SEC and now, they have come to a point where they claim XRP is not a security.
According to the legal team, the US SEC cannot consider Ripple’s XRP token as a security. If XRP is to be considered a security, it needs to have a contract or rights given to the owners/investors.
XRP neither involves an investment contract nor grants any kind of rights to the investors. Therefore, XRP cannot be considered a security, which means that the US SEC cannot pursue the case anymore.
US SEC’s Allegation over Ripple Labs
The foundation of the case filed by the US SEC against Ripple Labs back in December 2020 was that XRP was a security.
In the lawsuit, the US SEC claimed that Ripple had been offering XRP to the locals in the United States. As the US SEC considered it to be a security, it alleged that Ripple was involved in illegal activity.
This is because security needs to be approved and registered by the US SEC before an online financial service provider can offer it to US locals.
Ripple has Requested a Dismissal of the Case
Now, the latest development in the case is that Ripple has claimed that XRP is not a security. This means that the foundation of the case was bogus and not credible at all.
Presenting their argument against the US SEC at the court, Ripple has demanded that the case must be dismissed. For this purpose, Ripple has already filed a motion at the Manhattan federal court for the consideration of dismissing the case.
Ripple may Face a Backlash from Investors
From a legal point of view, Ripple seems to have built a strong defense against the US SEC allegations. However, there is a downside to the claim that Ripple’s legal teams have made.
In their defense, Ripple has made the investors feel that they have no rights over the XRP they own. For the investors who spend money to buy XRP, this will be a huge shocker.
Such a realization may result in losing their trust and confidence in XRP, which may cause a downtrend for XRP.
