The U.S. Securities and Exchange Commission (SEC) has told a federal judge that recent court rulings undermine technology firm Ripple Labs’ key defense arguments in its legal battle with the regulator.
in a letter In a separate enforcement action sent to U.S. District Judge Analisa Torres, who is overseeing the lawsuit between the SEC and Ripple Labs, on April 11, the SEC underscored the judge’s view that it had won investment advisory firm Commonwealth Equity Services.
In that case, long-standing court case law provides sufficient “fair notice.”
The SEC argues that long-standing Supreme Court case law—which created the Howey test for determining what types of assets constitute securities—provides Ripple Labs with fair notice of what a security is, like the case. The case against the Commonwealth of Nations.
The SEC added its case against Commonwealth to provide “additional jurisdiction” to dismiss Ripple’s “fair notice” defense argument.
Ripple’s argument that the SEC failed to provide “fair notice” before suing the company for securities fraud in December 2020 was cited as one of its main defense arguments.
While many observers, such as cryptocurrency exchange Coinbase, believe this defense is valid, legal experts such as John Deaton believe that View other.
Deaton previously noted that the “fair notice” defense would only be valid if a judge ruled that Ripple’s tokens were securities at any point between 2013 and the present. According to lawyers, Ripple Lab’s best chance lies in convincing a judge that XRP is not a security based on the Howey test.
In the last 24 hours, XRP is back in the green after yesterday’s dip and is currently at $0.509.
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As reported by Cointelegraph