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Crypto Firm Fights SEC by Claiming Its Investors Lack Rights (1)

Sept. 19, 2022, 10:51 PM

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 ...