Both the US Securities and Exchange Commission (SEC) and Ripple Labs have asked a government judge to provide a quick ruling about the XRP sales of the company and whether it was in breach of regulations.
On Saturday, the securities regulator and the crypto firm filed gestures aimed at preliminary injunctions. The filing was done in the US District Court for the Southern District of New York.
It is possible to file for summary judgments in the court, even if one party believes that they have enough evidence for a decision to be made without having to go through the trial.
Judge Analisa Torres is the presiding judge over the matter and both sides have requested her to issue a quick ruling over the matter.
The case is about the XRP sales of Ripple Labs, which the SEC claims are in violation of the US disclosure rules.
According to Ripple Labs, the SEC has taken this action because it is out of response for demonstrating that the sales of the XRP token constitute an investment agreement.
Of course, the regulatory authority does not agree and is adamant that Ripple Labs violated the rules.
Ripple speaks up
Brad Garlinghouse, the chief executive of Ripple Labs, said on Saturday that the documents make it apparent that the SEC is not interested when it comes to enforcing legislation.
Instead, it appears that they just want to declare everything illegal because they are just interested in expanding their authority significantly beyond the power that has been given to them by Congress.
Stuart Alderoty, the chief counsel for Ripple Labs, also said that the SEC has not been able to recognize any agreement for crypto assets.
Moreover, he added that the regulatory authority had also been unable to satisfy even a single component of the Howey Test of the Supreme Court, even though the matter has been ongoing for two years.
In the filing for summary judgment, Ripple has asserted that the SEC is only interested in asserting their authority unconstitutionally and they do not have any resource transmission.
The SEC had also acknowledged that the profits were derived from the forces of business demand and supply, based on the movements of Ripple.
A positive reaction
The move from Ripple and the SEC generated positive reactions from the crypto community, as they all have been waiting for a judgment to be made in the matter.
People are eager to know that the end is approaching because the decision would have a broad impact on the crypto industry.
It has been two years since the SEC filed a lawsuit against Ripple Labs, Brad Garlinghouse and Christian Larsen in December 2020.
The regulator had charged them for raising funds worth $1.3 billion through the sale of unregistered securities in the form of their XRP token.
The outcome will determine if virtual currencies are to be treated as commodities, or securities under US corporate law, which would be a landmark decision.