Ripple denies this, but the case has thrown up wider concerns over the legality of Ripple’s operations regarding XRP. As Cointelegraph reported, executives have refused to acknowledge the company’s relationship to the token, despite their huge personal holdings and continuing sell-offs.
Blockchain network Ripple has filed a controversial motion to dismiss a lawsuit accusing it of selling unregistered securities.
Ripple: Securities ruling beyond scope of the court
In a court filing uploaded by Fortune on Sept. 20, lawyers representing the company against investor Bradley Sostack dismissed the claims.
Part of an ongoing legal battle, Sostack says Ripple’s sales of XRP in 2013 constituted an unlawful securities offering.
“Court need not resolve whether XRP is a security”
Now, fresh suspicions are swirling after the lawyers’ motion to dismiss failed to address the securities aspect of XRP at all.
“Because of the multiple, independent grounds for dismissing this action, the Court need not resolve whether XRP is a security or currency for purposes of this Motion, which assumes Plaintiff’s allegation that XRP is a security”, a section reads.
The substance of the filing attracted attention from crypto-focused lawyer Jake Chervinsky.
“They make twelve separate arguments for dismissal of the plaintiff’s claims. Not a single one squarely addresses whether XRP is an unregistered security”, he summarized on Twitter on Friday.
The latest developments appeared to have little impact on XRP markets – with the token continuing to trade flat over the past 24 hours at just under $0.30.
Ripple Boosts Blockchain Advocacy Efforts With DC Office
Ripple has opened a new office in Washington, D.C. in a bid to strengthen its advocacy efforts for blockchain and cryptocurrency.
Announced on Tuesday, the blockchain payments technology provider said the new premises near the heart of U.S. government comes alongside expansion of its global regulatory team as it ramps up efforts to educate policymakers on the benefits of the tech.
Amid that expansion, Craig Phillips, a former top aide to U.S. Treasury Secretary Steven Mnuchin, has joined Ripple’s board of directors. Phillips, the firm says, will bring “depth” to its policy leadership team and advise on “strategic regulatory opportunities” as the company grows.
Other new members of Ripple’s regulatory division include Susan Friedman – a senior adviser to CFTC Chairman Heath Tarbert when he was assistant secretary for International Markets at the Treasury – and Ron Hammond, a former legislative assistant to Rep. Warren Davidson who led the drafting of the Token Taxonomy Act, as reported in September.
Explaining the developments, Ripple said:
“In the U.S. and abroad, it’s important for policymakers to be armed with industry knowledge to help them shape conditions that will enable technological innovation to thrive. At Ripple, we look forward to continued conversations with policymakers and are building a team that brings a wealth of legislative and policy experience.”
Also revealed in today’s announcement is that Ripple has become a member of the Blockchain Association, an industry body that advocates for blockchain tech and sets out to build relationships between firms building distributed solutions and government.