SEC Accuses Ripple of Slowing the Lawsuit to Keep Selling XRP

Last Updated:
SEC files brief on Hinman speech as XRP lawsuit drags on
  • SEC accuses Ripple of prolonging the lawsuit to continue XRP sales.
  • Ripple community expresses shock and alleges SEC hypocrisy.
  • Prominent lawyer James Filan thinks the SEC’s idea is laughable.

In a recent court filing, the U.S. Securities and Exchange Commission (SEC) submitted a response brief to support its motion to certify an interlocutory appeal. The filing represents a memorandum in which the SEC seeks an appellate review in its ongoing legal dispute with Ripple.

Prominent defense lawyer James Filan took to X to share the development.

In the filing, the SEC alleged that Ripple Labs is deliberately attempting to extend the legal dispute to maintain the sale of XRP in the public space. Moreover, it alleged that Ripple lacked institutional interest in resolving the lawsuit. The SEC’s statement read:

They [defendants] seek to prolong this litigation (as they have already promised to do), presumably so that they may continue selling XRP into public markets (as they tacitly admit).

Ironically, the SEC accuses Ripple of attempting to prolong the lawsuit, even though the regulator is known for employing delay tactics. In the past, Ripple brought attention to the SEC’s use of delay tactics regarding disclosing drafts related to William Hinman’s speech.

Expectedly, supporters of XRP and Ripple expressed their disagreement with the SEC’s allegations against Ripple. In a tweet, Ripple developer Neil Hartner expressed shock at the SEC’s assertion. 

While a prominent figure in the community expressed that the US regulator has no shame, another alleged that the SEC has been hypocritical with its usual eleventh-hour filing.

Meanwhile, to support its request to pause ongoing proceedings in the lawsuit, the SEC has argued that it would help conserve the resources of both the parties involved and the court. Defense lawyer James Filan believes the SEC’s idea is ridiculous.