Citing penalty charged to Coinschedule by SEC, Ripple has filed a motion asking the court to dismiss charges against companies CEO Brad Garlinghouse and Co-Founder Chris Larsen.
Recently Coinshedule together with its parent company Blotics is fined $200k for violating the securities law.
SEC Commissioners’ Statements Suggesting Regulatory Uncertainty:
In a recent filing shared on Twitter by the defendant’s attorney James K. Filan, Ripple has mentioned statements of SEC Commissioners Hester Peirce and Elad Roisman. Commenting on the outcome of the case against Coinshedule, Peirce and Roisman had stated:
“There is a decided lack of clarity for market participants around the application of the securities laws to digital assets and their trading.”
In another statement, they stated, the only certainty they have is that the people have questions; how the relevant laws and regulations apply to them.
Opining on the clarity the Howey Test[done to evaluate the asset if it is a security or not] provides Commissioners stated:
“The application of Howey Test is not crystal clear.”
Admitting that the market should be regulated by clear regulatory guideposts they asserted:
“Providing clear regulatory guideposts and then bringing enforcement actions against people who ignore them is a better approach than the clue-by-enforcement approach that we have embraced to date and that today’s settlement embodies.”
If Ripple can convince the court, the SEC could be subject to the Violation of article 17b of US Securities law.
The Lawsuit is Significant for the Whole Crypto Industry:
It is not the first time Ripple is insisting on regulatory uncertainty. In an interview with Protocol Ripple’s General Counsel Stuart Alderoty had alleged SEC of creating a “regulatory morass”. He had also stated that the lawsuit they are fighting is not only concerned to Ripple but it is significant for the whole market.
Alderoty had also asserted that no single party has the capacity for coming up with a digital currency regulatory framework and all the relevant parties should be involved in it.