Ripple adds two new banking partnerships in Asia despite SEC case growing more dramatic
Neither party in the SEC vs. Ripple Labs case is willing to back down, despite reports of a settlement recently. With the drama continuing to unfold in one direction, both sides have continued to fight and refute each other’s actions.
- In the SEC vs. Ripple Labs case, both sides are fighting and not willing to back down
- The SEC has now sent a letter to the judge opposing adding 3 new documents in-camera
- Ripple expands internationally with new banking partnerships
The Ripple lawsuit began in December 2018, when the US Securities and Exchange Commission (SEC) slammed the firm. The SEC claimed that Ripple had violated the nation’s security laws by selling unregistered securities.
However, Ripple has continued to refute this claim and its CEO, Brad Garlinghouse, claims that the company would “contest” the SEC’s allegations.
During his Fox Business interview, Ripple CEO Brad Garlinghouse stated that there was no possibility of a settlement until the SEC provided clarity. He said, “Ripple Labs only demands an ‘absolute certainty’ about how the SEC defines its (XRP) existence, its limit, and the scope of its use.” He added,
“To the extent we can find a constructive path forward with the SEC, we, of course, want to find that. There is no scenario though when we settle unless there is absolute certainty about what is XRP on the go-forward basis.”
The SEC has now submitted a letter opposing Ripple’s recent request to add three documents to the in-camera review that will be undertaken by Judge Sarah Netburn soon.
Ripple has asked the SEC for copies of the documents that it had previously refused on grounds of confidentiality, according to a letter submitted last week. Ripple believes the documents to be “extremely relevant” to its case.
The agency claimed in the filing that these papers are not in accordance with prior court orders. It stated,
“These documents are not responsive to the court’s prior orders, and the SEC placed the documents on a privilege log only in an (apparently futile) attempt to avoid disputes.”
The SEC’s filings also claimed that the documents requested in the motion are nearly identical to those previously submitted for on-camera review.
The correspondence submitted by Ripple last week states that the materials in question include discussions with regulators and third parties about digital assets.
The first two entries in the lately produced privilege log are discussions with legal counsel about these assets.
The third paper is purportedly an e-mail chain “involving discussions with a third party who defendants believe received guidance from the SEC to analyze its digital asset under the framework set forth in Director William Hinman’s June 14, 2018 speech.”
The speech has been a source of tension for quite some time. According to many, the ideas put forth by Hinman at the time might cause the entire case to collapse.
It’s not clear who the “third party” referred to in the log’s explanation is, but the papers might provide intriguing insights into long-debated topics that have been contested throughout the lawsuit.
To begin with, it might be the difference between whether or not the views expressed during this speech were Hinman’s own or the SEC’s official position. The SEC’s guidance to the third party would be relevant, as well, to demonstrate the agency’s lack of clarity in regulating cryptocurrencies. It would also support Ripple’s fair defense notice, which claims that its business model is legal.
The US Securities and Exchange Commission (SEC) has opposed Ripple’s most recent request, primarily because of privacy laws. It also said that the “court should not review the three additional papers.” However, it added that
“The SEC respectfully requests that it be afforded the opportunity to make a submission explaining its privilege assertions for each of these documents, just as the Court did for the documents the SEC has already submitted in camera.”
Ripple may be stagnant in the United States, but it is growing and forming partnerships with more financial institutions every day.
Novatti, a multi-channel payments technology firm, announced that it will continue its relationship with Ripple by establishing operations in Southeast Asia. Thailand’s market is getting bigger for Novatti. The addition will be accomplished through collaboration with the Siam Commercial Bank.
The mountainous nation of Bhutan is partnering with Ripple to test a central bank digital currency (CBDC), according to the Royal Monetary Authority of Bhutan.
In a Wednesday news release, Ripple Labs stated that the country’s central bank would utilize its private ledger to create and manage a digital Ngultrum. The Royal Monetary Authority, according to Ripple, pushed the bank to make the switch because it wanted to enhance cross-border payments, increase financial inclusion for its citizens, and “strengthen its commitment to sustainability as the world’s only carbon-negative nation.”
The announcement comes more than six months after Ripple said it would be piloting a private version of the XRP Ledger to provide central banks a solution to launch a CBDC.
Although this is still a long way from being resolved, there are supporters on both sides. Ripple’s most recent filing claims that the charge against them is “unfair” and that it is being used as a pretext for pushing out one of the most prominent competitors in the United States.
Garlinghouse mentioned on Fox,
“Once the dust settles, it’ll be clear that Ripple’s on the right side of the law, and the right side of history.”