Ripple Stands To Win Fair Notice Battle With SEC• February 11, 2022 9:56 pm • Comments
Ripple has recently filed its Sur-Reply as a response to the SEC’s Motion to Strike the Fair Notice Affirmative Defense in order to bring to the light the inconsistency of the SEC’s prior enforcement actions.
In the past, the SEC had made claims that Ripple’s fair notice defense fails because the SEC had apparently filed similar lawsuits in the past that debated whether a digital asset was considered a security or not.
The SEC also describes these actions as cryptocurrency enforcement actions and uses a report that was released by Cornerstone Research as a document to support that view.
In response to these claims, Ripple stated that the report actually does not support the SEC’s claims.
RIPPLE STANDS TO WIN BATTLE OVER FAIR NOTICE AMID SEC’S BACKFIRE!
The enforcement actions cited in the report do not actually support the SEC’s argument in the first place, Ripple argued. #XRP
— JackTheRippler🤫🐻🏦 (@RippleXrpie) February 10, 2022
In response, Ripple stated that a “sur-reply is amply justified here” in order to tackle “the SEC’s inappropriately premature request for this Court to conclude, as a factual matter, that market participants had fair notice that XRP would be considered a security.”
The enforcement actions cited in the report do not actually support the SEC’s argument in the first place, the Ripple counsel argued, adding that “not one of those cases alleged a violation of Section 5’s registration requirements for a sale of digital assets outside the context of an ICO.”
“The Court should deny the SEC’s request for judicial notice and disregard the SEC’s attempt to rely on disputed facts to foreclose a legally cognizable defense.”
In conclusion, Ripple argues that the court may not properly take judicial notice of the Cornerstone Report, the facts it contains are not undisputed; and if the Court were to consider the cases cited in the report, they support Ripple, not the SEC.
So essentially the @SECGov doesn’t know it’s own case history and just pointed at the volume of cases as evidence of having given @Ripple fair notice….and as @Ripple lawyers are professionals, they read them
— Generation XRP (@Marksie05) February 9, 2022
Attorney Jeremy Hogan shared his thoughts on Twitter and mentioned that he thinks that the fair notice defense will probably be accepted by the court
For charges against the founders of Ripple, the defendants stated that the SEC can’t plausibly make the assumption that the company was violating Section 5 registration requirements which categorizes 75 different cryptocurrency enforcement actions.
The movement additionally argues that the SEC’s first declare fails as a result of it doesn’t allege that their private gives or gross sales of XRP occurred in america.
Even when their conduct within the US had been related, the transactions in query are predominantly international and accordingly outdoors the scope of Part 5.
Certainly, the Chris Larsen email thread refers to an overseas sale of XRP. It’s unclear if the SEC has materials towards Ripple and the person defendants that’s related to the SEC’s jurisdiction.
In addition to this Fair notice defense, the unsealing of several documents by Judge Torres’s ruling recently may eventually help the lawsuit progress in Ripple’s favor and accelerate the timeline to sometime later in the year.
As the lawsuit continues to unfold, XRP currently leads the recent in the recent crypto recovery and has increased in 18% over the past week with a current price of $0.77 at the time of this writing.
Ripple’s XRP Shoots 20% after SEC’s ‘Fair Notice Defense’ Permission https://t.co/pNzPSssUU4
— Martin Valk (@martincpvalk) February 8, 2022
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