Ripple Labs together with the SEC filed a motion for a summary judgment, citing the sufficient and comprehensive amount of information provided. The Securities and Exchange Commission, together with the developer of XRP coins, require district Judge Analisa Torres to either admit a violation of the law or reject the claim, bypassing lengthy court proceedings.
A lawsuit on charges of raising more than $1.3 billion when selling XRP as an unregistered securities transaction at Ripple Labs was filed at the end of 2020. Since the beginning of the claim, several petitions have been filed by the parties.
Representatives of Ripple claim that XRP sales did not comply with the principles of the Howie test, which for many recent years has served as a way to determine whether something is a security. The absence of a contract between Ripple Labs and their investors in the transaction is a key discrepancy according to the Howie test requirement.
In turn, SEC representatives insist that most XRP buyers on exchanges did not know from whom they were buying coins, counting on the growth of digital assets in the future.