Another Attorney Calls It Quits

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Ripple Labs, which is facing an ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC), has seen yet another attorney resign from their defense team.

Following Kylie Chiseul Kim’s withdrawal in late May, Clayton J. Masterman, a significant figure on Ripple’s legal counsel, has filed a motion to remove himself from the case.

The case against Ripple, brought forth by the SEC, accuses the company, CEO Brad Garlinghouse, and co-founder Christian A. Larsen of conducting a $1.3 billion unregistered securities offering.

The lawsuit, initially filed in December 2020, hinges on whether the digital asset XRP should be classified as a security. If deemed a security, its sales would be subject to strict regulatory standards.

The SEC asserts that XRP meets this criteria and that Ripple and its executives have been in violation of securities laws. Conversely, Ripple has vehemently denied these allegations, maintaining that XRP is a currency rather than a security and, therefore, falls outside of the SEC’s jurisdiction.

The withdrawal of the attorney is unlikely to have any bearing on the outcome of the closely monitored case. According to the filed notice, other attorneys from Kellogg, Hansen, Todd, Figel & Frederick, P.L.L.C., and Debevoise & Plimpton LLP will continue to serve as counsel fo Ripple Labs.

As reported by U.Today, Ripple CEO Brad Garlinghouse has repeatedly mentioned that the case is going to be resolved in the near future.