The regulator is attempting to assert jurisdiction over any asset transfer that it “think may benefit from the registration and disclosure requirements of the securities laws,” Ripple said in its weekend filing.
Cryptocurrency firm Ripple Labs Inc. sought to defeat a Securities and Exchange Commission suit by claiming that its XRP token isn’t a security subject to the regulator’s authority.
Ripple over the weekend filed a motion seeking dismissal of the suit before trial in federal court in Manhattan. The company argued that XRP can’t be considered a security because there was no “investment contract” granting investors rights or requiring the issuer to act in their interests.
In a 2020 suit, the SEC accused Ripple and its top executives of misleading XRP investors by failing to register the digital asset as a security and not providing adequate disclosure. The case is expected to help define the commission’s ability to regulate cryptocurrency assets and could impact dozens of other digital coins.
