It has been over eight months since the tussle between the Securities and Exchange Commission of the United States and XRP. Throughout this period, the US SEC has alleged Ripple (XRP) of being involved in many unauthorized security services providing activities.
Ever since the US SEC filed a lawsuit against Ripple, the Ripple representatives have tried their best to fight off any allegations made by the US SEC. However, Ripple is now determined to change its stance, as it has demonstrated that it will be adopting an aggressive stance.
The Ripple team has announced that now it is going to expose the employees at the SEC that are currently holding XRP. The Ripple team has questioned why the SEC employees have XRP holdings if they are the ones calling them unregistered securities.
Therefore, in order to turn the tables and prove their point at the court, the Ripple team has submitted a new motion at the court. The motion was reportedly submitted by James Filan, Ripple’s attorney on August 27, 2021.
In the motion, Filan has demanded that the employees at the US SEC holding XRP must produce and provide the court with documentation. The documentation will prove that these US SEC employees have XRP in their holding and how they acquired them.
The reason why Ripple has resorted to this measure is that the US SEC is demonstrating a lot of stubbornness in the matter. At the beginning of 2021, it was instructed by the court that both US SEC and Ripple need to sit together and come up with a solution around the matter.
However, it seems that the US SEC is not willing to land on the same page with Ripple. So far, four meetings have taken place between the US SEC and the Ripple representatives but nothing positive seems to have come out of it.
Throughout the summer, both entities have back and forth meetings with each other. The purpose of the meetings was for both parties to a final consensus and move on. However, it seems that the US SEC is adamant that Ripple is offering unregistered securities to US citizens through XRP.
While the US SEC continues making its allegations, it has failed to produce and provide any documentation that supports/backs their claim. The sudden change of strategy by the Ripple defendants means that the US SEC has continued with its allegations against the crypto-firm.
In their motion, the executives of the company, Bradley Garlinghouse (CEO) and Christian A. Larsen (Chairman) of Ripple have made their claims against the SEC.
They have alleged that the US SEC had not restricted their employees from purchasing and holding XRP until January of 2018. This meant that the US SEC employees were also collecting XRP until the SEC decided they could no longer do it. However, no official statement or documentation has been provided by the US SEC as to why it stopped its employees from doing that.