The Ripple court case that has lasted since 2020 and will set a precedent for the industry could soon come to an end. Summary judgement motions have been filed by both the United States Securities and Exchange Commission (SEC) and Ripple Labs, the company behind Ripple (XRP).
However, recent developments, including an amicus brief from the Chamber of Digital Commerce, could throw off the expected timeline.
Despite this, XRP has continued to rally throughout the week as investors are hopeful the end is in sight.
Is XRP a security?
In December 2020, the SEC sued Ripple Labs and claimed that it had raised $1.3bn by selling XRP through unregistered security transactions.
Ripple Labs’ chief excutive Brad Garlinghouse and chariman Chris Larsen claimed that the sales were legal. Their argument was based on the Howey Test, a US case that determines whether an asset is a security.
While Ripple does not deny the sale of XRP, the cryptocurrency company argues that it does not meet the criteria of the Howey Test and is therefore not a security.
Meanwhile, the SEC argued in the summary of judgement filing that it met the “investment of money” criteria of the Howey Test.