The San Francisco-based payment company has long argued that the SEC has not given adequate notice that XRP is considered a security. In fact, Brad Garlinghouse, CEO at Ripple had repeated same in a Feb 19 tweet. Nevertheless, when Defendant sensed a potential victory, the SEC had been curtailed with several significant strikes.
Ripple Labs (defendant) struck again when the judge, Analisa Torres, denied the SEC’s motion to ban Ripple from using a “Fair Notice Defense”. James K. Filan, a famous attorney who closely follows updates to the lawsuit, tweeted this on March 12.
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) March 11, 2022
Ripple has argued in his favor over the regulator’s failed move to pre-advance the public sale of XRP. The SEC also “proven plausibly” that the individual defendants made domestic offers of the token.
Interestingly, on March 12, the court dismissed the claim stating that XRP’s sales were predominantly foreign. The court “will not conclude” that Ripple’s affirmative defense is invalid at this stage of the case. Further, the judge argued that the agency would not suffer “undue bias” as a result of the defense’s continuation.
Good to see the judge dismissing the SEC’s attempt to prevent Ripple from continuing its defense of fair disclosure. It’s even more important that the sun is setting on the SEC’s “regulation-by-enforcement” approach.
— Stuart Alderoty (@s_alderoty) March 11, 2022
In addition, legal expert Jeremy Hogan commented the following:
“I know you’ve been working this week on the pending rulings in the Ripple v. SEC case. On behalf of myself and certain other interested parties, we would like to receive these statements TODAY, if possible (…). TREE!
SEC’s motion to override Fair Notice Defense is DENIED. This is the one I’ve been waiting for. NOW the SEC has something to lose.”
Garlinghouse, also took to Twitter to describe the “fair notice” statement. He saw it as a “huge victory” for the defendants, regardless of his failed motion to dismiss the lawsuit. That said, he stays confident that the SEC’s allegations would be dismissed.
All in all, this was indeed a huge development that would bring greater legal clarity and certainty to the rest of the market.
For a while
As a result of these recent developments, the native token XRP is up more than 15% at the time of writing, so welcome this victorious sentiment. At the time of writing, it was trading at $0.81 according to CoinMarketCap.
This post XRP Rises >15% as Ripple Wins the “Fair Notice Defense, But Now What”
was published first on https://ambcrypto.com/xrp-soars-15-as-ripple-wins-the-fair-notice-defense-but-whats-next/