Fintech firm Ripple is garnering more support from the crypto and finance industry in its ongoing battle with the United States Securities and Exchange Commission (SEC).
On Nov. 4, Ripple CEO Brad Garlinghouse proudly tweeted that the number of companies, developers, exchanges, associations and investors officially supporting the firm has reached 12.
The pile of amicus briefs being filed is mounting up according to Ripple Labs general counsel Stuart Alderoty.
An amicus brief is a legal document filed in appeals cases to aid the court by providing extra relevant information or arguments. These briefs are filed by amicus curiae, a Latin phrase that translates to “friend of the court.”
“It’s unprecedented (I’m told) to have this happen at this stage,” Garlinghouse exclaimed.
For those of you keeping count, 12 (!) amici briefs submitted. It’s unprecedented (I’m told) to have this happen at this stage. They each explain - in their own unique way - the irreparable harm the SEC will do to every facet of the US crypto economy if it gets its way.
— Brad Garlinghouse (@bgarlinghouse) November 3, 2022
On Nov. 3, the SEC filed a motion to extend the time to file all reply briefs until Nov. 30. It asked Judge Analisa Torres to order that any additional amicus briefs be filed by Nov. 11.
Alderoty mocked the SEC’s response claiming that the agency “needs more time, not to listen or engage, but to blindly bulldoze on.” Garlinghouse had previously hoped for a conclusion in the first half of 2023, but with the evidence mounting, the SEC could drag it out longer.
The most recent amicus brief was filed by Cryptillian Payment Systems on Nov. 3 as confirmed by defense lawyer James K. Filan.
#XRPCommunity #SECGov v. #Ripple #XRP Cryptillian Payment Systems, an online digital wallet service for retail customers and commercial retail businesses using XRP, asks to file an Amicus Brief supporting Ripple's Opposition to the SEC's Motion for SJ.
— James K. Filan 124k (beware of imposters) (@FilanLaw) November 3, 2022
Veri DAO also joined the list of Ripple supporters on Nov. 3 with its own amicus brief.
That growing number of supporters that have already filed briefs include Coinbase, the Chamber of Digital Commerce, the Crypto Council for Innovation, the Blockchain Association, Valhil Capital, I-Remit, Spend The Bits, Tapjets, the Investor Choice Advocates Network (ICAN) and John Deaton on behalf of more than 75,000 XRP investors.
The U.S. securities regulator took action against Ripple in December 2020, accusing the company and its executives of conducting an unregulated securities sale of its XRP token.
Almost two years later, the battle is still raging on but support for Ripple is growing as its case strengthens. Garlinghouse has previously stated that Ripple would consider a settlement with the SEC, providing that XRP is not classified as a security.
The Canadian federal government is set to launch a consultation on cryptocurrencies, stablecoins and central bank digital currencies (CBDCs) as revealed in its new mini-budget.
The government’s “2022 Fall Economic Statement,” released on Nov. 3 by Deputy Prime Minister Chrystia Freeland, works as a fiscal update in conjunction with its main yearly budget.
The statement included a small section on “Addressing the Digitalization of Money” that outlined the government’s crypto plans.
It said the rise in cryptocurrencies and money digitalization is “transforming financial systems in Canada and around the world” and the country’s financial system regulation “needs to keep pace.”
The statement opined that money digitalization “poses a challenge to democratic institutions around the world,” highlighting cryptocurrencies’ use in sanctions avoidance and illicit activity financing both domestically and abroad.
In the statement, the government said consultations with stakeholders on digital currencies, stablecoins, and CBDCs are being launched on Nov. 3, although exactly which stakeholders will be engaged remains unclear.
The announced consultations are understood to be part of the government’s intention to launch a “financial sector legislative review focused on the digitalization of money and maintaining financial sector stability and security,” which was part of the 2022 budget released on April 7.
This review will also examine the “potential need” of a Canadian CBDC in light of these risks.
In January, protests broke out in the nation’s capital of Ottawa regarding the COVID-19 vaccine mandate and restrictions in Canada, with protestors migrating to crypto fundraising platforms after being kicked off competing fiat fundraising platforms.
The province of Ontario declared a state of emergency on Feb. 11 due to the protestor’s road blockades resulting in its government freezing millions in donations to protestors, at the time protestors raised around 21 Bitcoin, worth $902,000.
Prime Minister Justin Trudeau invoked the Emergencies Act on Feb.14 for the first time in Canada’s history giving him the power to freeze protesters’ bank accounts and monitor “large and suspicious transactions,” including crypto.
Two days later, Canada’s federal police force sent letters to several crypto exchanges demanding they stop processing transactions of more than 30 specific crypto wallet addresses linked to the ongoing protests.
A local report from South Korea claims that the country’s prosecutors have obtained evidence to suggest Terraform Labs co-founder Do Kwon had once ordered an employee to manipulate the price of Luna Classic (LUNC).
A report by Korean Broadcasting System (KBS) on Nov. 3 quotes an official from the South Korean prosecutor’s office, who said they have obtained a “conversation history” in which “CEO Kwon specifically ordered price manipulation.”
The reported evidence came in the form of a “messenger conversation” between Kwon and a former Terraform Labs employee. Prosecutors did not disclose further details, noting:
“I can’t reveal details, but it was a conversation history where CEO Kwon specifically ordered price manipulation.”
While the exact details of the price manipulation remain undisclosed, the price action of Terra’s LUNC, formerly Terra (LUNA), during the last bull market was undoubtedly one of the most impressive across all cryptocurrencies.
Its price rose over 2,800% from $4.18 in late May 2021 to its all-time high of $119.18 on April 5. 2022, before its cataclysmic fall on April 30, according to CoinGecko data.
The report, however, notes that Kwon’s representative has continued to deny these allegations.
Kwon and his representatives have also previously denied alleged violations of South Korea’s capital markets laws.
In September, Terraform Labs said the case against its co-founder has become “highly politicized” and that prosecutors expanded the definition of a security in response to public pressure.
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