Big accomplishment for XRP in Ripple-SECm Lawsuit.
Ripple Vows to Seek Regulatory Clarity for the Cryptocurrency Industry Amid Favorable Development in the SEC Lawsuit.
In what could be described as a major win for the XRP community, Judge Analisa Torres has denied the Securities and Exchange Commission’s request to restrain famous fintech company Ripple from filing a fair notice defense.
According to recent court documents, Judge Torres noted that the SEC had failed to meet the burden of proving the fine points of the case, especially the fact that the plaintiff could be prejudiced by the inclusion of Ripple’s fair notice.
Based on the aforementioned reason, Judge Torres was inclined to deny the SEC’s request saying:
“The SEC’s motion is DENIED. The Clerk of the Court is directed to terminate the motion at ECF No. 128.”
Commenting on the development, Stuart Alderoy, General Counselor at Ripple, told Fox Business that the ruling brings up an important question as to whether the SEC ever informed the XRP company that its crypto offering would be prohibited under securities law, adding:
“We will continue to fight hard in defending this case so that the industry can get the needed clarity it deserves to move forward and thrive.”
Huge Win for XRP:
Responding to the latest order from the court communicated by Ripple’s general counsel, Brad Garlinghouse expressed, “If you weren’t paying attention then, you should be now. Huge win for Ripple today!”
If you weren’t paying attention then, you should be now. Huge win for Ripple today! https://t.co/dMeUQuIPHM
— Brad Garlinghouse (@bgarlinghouse) March 11, 2022
Garlinghouse also voiced that the filings against him, Ripple, and Laren will ultimately be dismissed:
“And while we would have preferred the cases against Chris and me to end now, the SEC must now prove its claims. We are confident that ultimately all of them will be dismissed.”
Statement from Ripple General Counsel to FoxBusiness:
“Today’s order confirms that there is a serious question as to whether the SEC ever provided Ripple with fair notice that its distributions of XRP – since 2013 – would ever be prohibited under the securities laws. We will continue to fight hard in defending this case so that the industry can get the needed clarity it deserves to move forward and thrive. And while we would have preferred the cases against Brad and Chris to end now, the Court has decided to make the SEC prove its claims. We are confident that ultimately all of the SEC’s claims will be dismissed.”
Ripple’s Effort to Evade SEC Sanctions
With the recent development, Ripple can now argue that it never received a prior warning from the SEC that its cryptocurrency offering, the XRP, could breach securities laws.
The fintech company said it tried to avoid getting into hot waters with the Securities and Exchange Commission by employing legal experts, who gave Ripple some insights into how to breach the SEC’s laws.
Ripple also noted that it went as far as changing its business model to avoid violating SEC regulations.
However, Ripple’s fears became a reality in late 2020, when the Securities and Exchange Commission charged the blockchain company and two executives for conducting an unregistered securities offering that saw it raise $1.3 billion.
The case has lingered ever since. While Ripple echoed the industry’s frustration that the agency has never provided more clear regulatory clarity for digital assets, the SEC noted that its laws are clear, thus giving a proper explanation on which offering falls within its jurisdiction.
In previous court sessions, Ripple CEO Brad Garlinhouse also noted that former SEC commissioner Elad Roisman made the company believe in 2018 that its crypto offering never constituted a securities offering.
Roisman’s comment has been described as Estabrook Notes, a document that has been another point of argument between the duo in recent times.
Meanwhile, XRP has reacted positively to the news, surging above 10% in the last 24 hours.