Ripple has to accept a damper in the legal dispute with the SEC. A US court has now thwarted an application from the crypto company.
After Ripple was able to record several partial successes in the legal dispute with the SEC in mid-April, a setback for the crypto company now follows. Because the New York District Judge Sarah Netburn now has a motion from Ripple declined, who asked the SEC to stop investigations into the case abroad and to disclose results to date.
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The start-up’s lawyers justified the application by stating that the exchange regulator had not acted in accordance with US law by obtaining information from abroad. The SEC should have formally notified these steps to Ripple. In addition, the defense accused the stock exchange regulator of having put business partners under pressure. The agency argued, however, that disclosure would have “far-reaching negative effects” for cross-border SEC investigations.
After evaluating the files, the court could not find any breach of law on the part of the SEC. The agency’s approach is justifiable within the framework of the “Multilateral Memorandum of Understanding”. Since 2002, the agreement has simplified cross-border cooperation between tax authorities. Judge Netburn also threw off the accusation of exerting pressure on business partners. The SEC did not act “with bad intent,” the statement said. Ripple’s application is thus rejected. In addition, the court is demanding disclosure of all documents that the SEC received in the course of the foreign investigation.
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Ripple with new partnership in North Africa and the Middle East
Regardless of the legal battle, Ripple continues to work on its vision of cross-border payments in real time. Now the start-up was able to establish a new partnership proclaim. From now on, Ripple is working together with the National Bank of Egypt (NBE) and the LuLu Exchange from the United Arab Emirates together to create a cross-border payments corridor in the region. The head of the department for financial institutions and international financial services, Hesham Elsafty, was more than pleased with the partnership:
Egypt is among the five countries in the world that receive the most remittances from their overseas citizens. Given the important role remittances play in the Egyptian economy, the National Bank of Egypt is constantly striving to develop and improve the infrastructure for this line of business.
Hesham Elsafty, NBE Head of Financial Institutions and International Financial Services
RippleNet, a blockchain-based network for institutional payment providers, will serve as the basis for this. With the decentralized technology, NBE and LuLu aim to remove some of the “inherent friction” within the traditional payment infrastructure, making cross-border payments “cheaper, faster and more reliable”.