Ripple CEO Brad Garlinghouse released a copy of a letter filed by his attorneys declaring his intent to file a motion of dismissal on SEC charges laid against him.
The charges stem from a December 2020 case lodged against Ripple Labs and a few key executives by the SEC. The SEC claims that XRP is categorized as a security, therefore making its sales in the U.S. illegal.
Garlinghouse has been adamant that XRP should not be classified as a security and should be viewed the same as Bitcoin or Ethereum. Both cryptocurrencies have already been deemed to not be securities by the SEC.
After the lawsuit was initially brought against Ripple Labs, Garlinghouse stated;
“No other country has classified XRP as a security. The SEC has permitted XRP to function as a currency for over eight years, and we question the motivation for bringing this action just days before the change in administration.”
On March 3, 2021, Garlinghouse’s lawyers filed a letter “indicating intent to file a Motion to Dismiss in response to the SEC’s amended complaint.”
The SEC’s initial charges were amended in a Feb. 18, 2021 document that focused on charges against Garlinghouse of aiding and abetting unregistered sales of XRP. His legal team’s defense claims that in order to land aiding and abetting charges, they must prove that Garlinghouse knowingly participated in Ripple committing violations.
Shortly before the ammended charges we released, Ripple and the SEC filed a joint letter to the U.S. Southern District of New York federal court. It mentioned that there is currently no “prospect for settlement at this time.”
The case is not expected to conclude before Aug. 16, 2021.