Countdown to the XRP Decision: Inside Ripple’s Defense Strategy
Ripple has clocked a couple small wins so far, but we will see if it can get its defense over the finish line with the judge.
XRP represent the common enterprise.
The court didn’t buy it though, based on 3,000 affidavits Ripple submitted from XRP holders and an amicus curiae filed by crypto attorney John Deaton.
The SEC then pivoted and alleged XRP itself was the common enterprise, but Ripple’s chief legal officer Stuart Alderoty begs to differ.
“In 1946, in its [Supreme Court] ‘Howey’ brief, the SEC unsuccessfully argued that an investment in a ‘common enterprise’ was unnecessary provided there was a ‘community of interest,’” Alderoty said in a Tweet earlier this month. “The SEC was wrong then and it is still wrong now. Common Interest ≠ Common Enterprise.”
What’s next
Ripple and the SEC filed motions for summary judgment in September 2022. Since then, both parties have submitted numerous motions and briefs with more information hoping to sway the judge.
A summary judgment is the expected outcome, Alderoty told Blockworks in March. Technically, Ripple could still reach a settlement agreement with the SEC. The firm has not expressed public interest in doing so unless the SEC agrees to confirm XRP is not a security, however. Legal experts say this outcome is unlikely.
https://blockworks.co/news/inside-ripple-defense-strategy