Ripple chairman joins fight to dismiss SEC lawsuit
By Bob Garcia
The ongoing battle between the SEC and Ripple takes a short detour
Ripple (XRP) is still trying to get dismissed the securities violation case filed by the Securities and Exchange Commission (SEC). To try to find a favorable resolution, Ripple Executive Chairman Chris Larsen is joining forces with CEO Brad Garlinghouse, calling for the case to be thrown out. As long as this debate has been going on, it isn’t likely the SEC will be ready to listen.
Four different reasons explaining why the case against the Ripple chairman should be dismissed were shared by Larsen’s attorneys through a court filing a couple of days ago. According to that letter, there’s no way that the SEC can prove that Larsen “knowingly or recklessly provided substantial assistance” toward the violation of Section 5 of the Securities Act of 1933. Besides, the letter has further explained that, when Larsen bore the designation of Ripple CEO in 2015, XRP was classified as a currency by both Treasury Department’s Finance Crimes Enforcement Network and the Justice Department.
As part of the defense, the legal team representing Larsen has also stated that the success of XRP sales had nothing to do with him taking actions to ensure it. The following was added as part of its fourth line of argument, “Because the SEC has alleged that the sales of XRP over a multi-year period constituted only one offer, which began in 2013, the statute of limitations began to run in 2013 and expired in 2018.”
Two additional arguments looking to dismiss the case were also offered by Garlinghouse’s attorney Matthew C. Solomon in a different letter that was filed on Wednesday. According to this attorney, Garlinghouse’s activities concerning the sale of XRP tokens were nothing more than part of the job, considering that he’s the head of the company, and he can’t be held personally responsible.