- Ripple attempts defense on several fronts, going international
- Motion filed by Brad Garlinghouse involves Binance into the court proceedings
- XRP consolidates amid the lawsuit, without a pronounced bias
Yerevan (CoinChapter.com) – Ripple Labs (XRP) is challenging the Securities and Exchange Commission (SEC) internationally this time, as Brad Garlinghouse, the CEO of the blockchain startup, brought Binance Holdings Limited, the Cayman Island-based crypto exchange, onto the lawsuit stage.
Mr. Garlinghouse filed a request to obtain documents from Binance, which will prove his overseas XRP transactions. The chief executive and his lawyers hope to build a defense front around the fact that the initial XRP offerings have not happened in the US, therefore, are not subject to US investment laws.
In hindsight, the SEC filed the lawsuit back in December 2020. The governmental agency accused the startup and two executives (Brad Garlinghouse and former CEO Chris Larsen) of an illegal sale of XRP as unregistered securities worth $1.3 billion. Ripple fired back, claiming that XRP is not securities, but a cryptocurrency, thus not subject to securities laws.
The lawsuit dragged on with wins and losses for both sides. As the prosecution looks for new attack angles, the defense responds with counterstrikes.
Ripple vs. SEC international twist.
Ripple’s defense in the case rested on two main pillars: the cryptocurrency vs. securities conundrum and the fair notice. The latter is based on the fact that the SEC allegedly has not issued warnings before filing the said lawsuit.
As Binance stepped into the court proceedings, Ripple hopes to fight back on an international platform, adding a third front to the battle.
As the SEC knows, Mr. Garlinghouse’s sales of XRP were overwhelmingly made on digital asset trading platforms outside of the United States (…) the discovery that Mr. Garlinghouse seeks will be relevant to demonstrating that the offers and sales that the SEC challenges did not occur in this country and are not subject to the law that the SEC has invoked in this case.reads the filing, put forth by Mr. GArlinghouse’s lawyers.
As the CEO hopes to prove, if Binance confirms the transactions happened outside of the US, then the SEC has no authority over those transactions to begin with. Binance will likely have to comply, as the motion involves a law enforcement agency and evoke the Hague Convention.
James K. Filan, an attorney, actively involved in the case, tweeted the entire document.
As the lawsuit dragged on and the much-awaited settlement was still not in the picture, Ripple’s token XRP consolidated around $0.72 in the Thursday session.
XRP daily chart
After accomplishing an almost 50 percent rally in Bitcoin’s footsteps from July 21 to July 30, XRP price action moved sideways, without much fluctuation. Finally, the token scored a golden cross between the 20-day exponential moving average (EMA-20) and the 50-day simple moving average (SMA-50).
In detail, the golden cross forms when a short-term MA crosses above a long-term MA. It promises a bullish period ahead and further gains for the XRP bulls. Nevertheless, a golden cross can be reversed if the price slips and the EMA-20 fail to hold the dominant position.
As for the moment, the future bias of Ripple is not clear for as long as the lawsuit doesn’t resolve.
Ripple’s move to involve Binance in the lawsuit stems from their strategy to disable SEC and force the agency to lift its accusations against Mr. Garlinghouse. However, time will tell if the tactic pans out.