XRP Lawsuit: SEC Replies To Ripple Letters Regarding Voyager Case• March 25, 2023 11:36 am • Comments
Previously, Ripple had used the Bittner and Voyager cases as a way to support its defense against the SEC by using the supplemental authority in the ruling of each of those cases.
Essentially, the rulings in those cases showed that the judge had strong words that that stated that there was an unclear regulatory environment for crypto within the United States.
As a result, the words of the judge could prove to be useful for Ripple when it comes to defending the fact that there was no clear guideline given to the company that stated that XRP could be considered a security.
If there are no clear guidelines, then it would not be just to charge Ripple of selling unregistered securities and Ripple had used this argument for its fair notice defense.
Finally, it seems that the SEC has provided a response to these Ripple letters, but their response is not quite convincing.
The SEC (finally) replies to Ripple's supplemental authority. They must be busy with other things!
Although it raises valid points re the Bittner case, it's attempt to argue that the Voyager judge did not say that the crypto space faces glaring uncertainty is … smirkable. 🙂 https://t.co/rImSHSB6IM pic.twitter.com/ZUGMfkX2Go
— Jeremy Hogan (@attorneyjeremy1) March 23, 2023
In its reply brief yesterday, the SEC asserts that neither decision supports Ripple’s fair notice defense and provides no basis for denying the SEC’s motion for summary judgment. “Indeed, neither decision even involves a fair notice defense,” the SEC said.
In addition, the agency claims it has “consistently provided guidance” that crypto offerings violate securities laws “when they involve the offer and sale of an investment contract.”
“Voyager does not help Defendants either,” states the SEC, which argues that it involved a bankruptcy plan for the potential sale of a crypto asset conglomerate to another company.
“Defendants shamelessly mischaracterize the Voyager bankruptcy court’s statements and pluck choice phrases out of context in a misguided attempt to boost their unavailing fair notice defense,” the SEC continues, claiming that nowhere in his order did Judge Wiles emphasize “limited guidance … for market participants generally”.
It seems that the SEC is pretty much denying the fact that the Voyager judge said anything about the crypto space facing unclear regulatory guidelines.
Attorney Jeremy Hogan commented on the SEC’s replies and said that their reply was “smirkable” as it did not negate the message of the Voyager judge’s ruling.
As it stands right now, it looks like there is no settlement yet and the possibility of the case going to the Supreme Court still exists.
Attorney Deaton also pointed out that going to the Supreme Court would actually be favorable for XRP as Justice Gorsuch used to work at Michael Kellog’s firm who orchestrated Ripple’s fair notice and defense brief.
Of course, it would be preferred if the case did not go all the way to the Supreme Court as the case would drag on for additional time, but the odds look good for Ripple either way.
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) March 23, 2023
Hogan further adds, “I think these are two cases that are bad for the SEC, and this reply negates the Bittner decision a little but doesn’t take away much bite from the Voyage judge’s ruling. That Voyager order is really good for Ripple.”
According to a Fox Business piece by Eleanor Terrett, the legal quandary between Ripple and the SEC might soon end. The report cites attorneys working on the case as saying that Judge Torres might rule on summary judgment motions in the coming days. Either Ripple or the SEC might have the victory.
Another outcome might be that the judge could order the case to go to trial. The article highlighted three possible outcomes. Ripple President Monica Long recently stated in a CNBC interview that the company was optimistic about reaching a positive resolution in the SEC case.
#XRPCommunity #XRP A page from the Voyager bankruptcy decision courtesy of @iampaulgrewal describing the current and future regulatory environment regarding cryptocurrency. Full decision is linked in the @iampaulgrewal tweet. https://t.co/URNyCasplk pic.twitter.com/Ru9ZkdkQgU
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) March 15, 2023
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