A New Development Has Happened In The Lawsuit Between Ripple And SEC
In the lawsuit filed by the SEC at the end of December for the unregistered sale of XRP to Ripple, the last move came from the US Securities and Exchange Commission (SEC), while the parties were considering even the smallest detail to block each other and impose their home defenses.
Attorney James Filan, who closely follows the case and is one of the important names in the XRP community, provided information on his Twitter account. Filan said the SEC had requested litigation judge Analisa Torres to disregard Ripple’s recent ‘fair notice’ defense.
SEC Thinks ‘Fair Notice’ Defense Won’t Be Made That Way
In a letter to US District Court Analisa Torres, the SEC stated that Ripple’s latest defense has nothing to do with the “Fair Notice” defense style, and that “Fair Notice” does not require any formal correspondence, and Ripple cannot claim the opposite.
Ripple, on the other hand, claims that they received no warning from the SEC that XRP might not be a security, but that the agency followed a much different policy than it did in previous digital asset lawsuits. Therefore, Ripple lawyers state that the SEC should have warned them in the past.
According to the SEC, Accepting the Fair Notice Invalidates the Howey Test
According to the SEC, judge Torres’s acceptance of the ‘Fair Disclosure’ defense as organized by Ripple would invalidate even the Howey test. Because the institution claimed that such a defense by Ripple could refute any claim, including investments that were previously considered securities. “The court should reject a request to make such a decision,” the SEC’s letter said.
As it will be remembered, the SEC announced in 2018 that Bitcoin and Ethereum are not securities. The reason for this was shown to be the ability of states to replace their currencies.
The Ripple company claims that XRP is not a security like Bitcoin and Ethereum.
SEE ALSO; New Development in Ripple(XRP)-SEC CaseShare this article