Ripple will have two former Securities and Exchange Commission (SEC) officials on their side in the ongoing private lawsuit against the cryptocurrency.
The third biggest digital currency will be defended by Mary Jo White, the former chair of the SEC, as well as former Enforcement Chief Andrew Ceresney. The lawyers will be attempting to disclaim that the cryptocurrency is a security.
The charge was instigated by a previous Ripple investor, Ryan Coffey, who filed a class action lawsuit against the blockchain network in a claim that the company was breaching security laws.
The complaint filed by Coffey declares that there is a direct associated relationship between the Ripple the company and Ripple’s XRP claiming in the lawsuit that the “development of the XRP Ledger, and the profits that investors expected to derive therefrom, were, and are, based entirely on the technical, managerial, and entrepreneurial efforts of Defendants and other third parties employed by Defendants.”
Ripple’s director of regulatory relations Ryan Zagone, however, thinks otherwise and had previously argued with the UK parliamentary committee and had asserted that there is “not a direct connection between Ripple the company and XRP.”
Both parties differ in opinion and it is up to the court to decide. The court who may or may not be influenced by the two former SEC executives.
For now, Ripple’s XRP is up by 1.78% day-on-day, and presently trades at $0.68 USD.