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HomeCrypto NewsMarketRipple General Counsel Says SEC Theories Are Subject to Fair Notice Defense

Ripple General Counsel Says SEC Theories Are Subject to Fair Notice Defense

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Ripple’s General Counsel Stuart Alderoty says the United States Securities and Exchange Commission’s (SEC) theories are subject to fair notice defense.

Stuart Alderoty, General Counsel at Ripple Labs, has continued to provide clarity on the court’s ruling in the SEC lawsuit. In a tweet yesterday, Alderoty said the court clarified that SEC’s theories are subject to fair notice defense.

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Per Alderoty, the court made the position in footnote 20 in its latest ruling in the SEC v. Ripple lawsuit. The tweet is part of Alderoty’s effort to help crypto businesses that are embroiled in different lawsuits against the SEC.

Recall that the court ruled that Ripple’s past sales to institutional clients are securities. Consequently, the court declined to address “Ripple’s asserted fair notice defense as to the other transactions and schemes.”

Furthermore, the court clarified in the footnote that its decision is limited to Ripple’s institutional XRP sales because “SEC’s theories as to the other sales in the case are potentially inconsistent with its enforcement in prior digital asset cases.”

SEC Fuels Confusion Via Its Claims

Alderoty’s clarification comes a few hours after the SEC expressed excitement about the ruling. In its statement, the SEC said the court rejected Ripple’s fair notice argument.

According to the SEC, the court rejected the argument because “the Howey test is clear, and claiming ignorance is not an excuse to violate securities laws.”

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Following the comment, many crypto enthusiasts might think the SEC’s theories are not subject to fair notice defense. Thus, prompting Alderoty to provide clarity for other crypto defendants currently in legal tussles against the SEC.

Coinbase CLO and Deaton React

Interestingly, top crypto stakeholders have reacted to Alderoty’s remark. In a tweet yesterday, Paul Grewal, the Chief Legal Officer at Coinbase, said, “No question.”

It is worth noting that Coinbase is one of the crypto businesses currently engaged in a lawsuit with the SEC.

Furthermore, pro-XRP lawyer John Deaton reacted to the post and stated the importance of reading footnotes. Deaton said the denial of Ripple’s fair notice argument only applies to the company’s past institutional sales.

 

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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Lele Jima
Lele Jima
Lele Jima is a cryptocurrency enthusiast and journalist who is focused on educating people about how the nascent asset class is transforming the world. Aside from cryptocurrency-related activities, Jima is a lover of sports and music.

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