Ripple Vs SEC: ‪Ripple Can Now Argue It Did Not Have Fair Notice; Here’s Why

Ripple has notched another victory in the XRP Vs SEC case. Presiding Judge Analisa Torres has denied the SEC’s motion to strike out Ripple’s fair notice defense.

SEC’s motion to strike fair notice defense denied

The motion filed by the SEC sought to restrain Ripple from arguing that the commission failed to warn it of wrongdoing. The SEC argued that the securities laws are clear on what constitutes a sale of unregistered securities.

In her ruling, Judge Torres stated that the SEC had failed to meet the burden of proving the fine points of its case. This included the SEC’s failure to demonstrate that there is no question of fact and law that would allow the defense to succeed, and also that the plaintiff would be prejudiced by the inclusion of the fair notice defense.

She also acknowledged Ripples pleading in the matter, noting that the fintech company filed its defense in a timely fashion.

 Accordingly, the SEC’s motion to strike Ripple’s fair notice affirmative defense is DENIED, the ruling intoned.

With the victory, Ripple can further its fair notice defense as the case proceeds. The defense entails that before when the SEC filed a complaint against it in 2020, the commission had failed to provide guidance.

Ripple CEO Brad Garlinghouse has even alleged that former SEC commissioner, Elad Roisman, invariably led Ripple to believe there was no cause for concern in a meeting held in 2018. Ripple is seeking disclosure of the minutes of the meeting contained in the “Estabrook Notes.”

The latest ruling has presently gained plaudits for the XRP community. One community member even declared that with the ruling, the SEC is now “toast.”

Where is the XRP vs Ripple case headed next?

While the ruling is highly in favor of Ripple, there may still be some waiting before the case is wrapped up. Late last month, Ripple lawyers filed for an extension in the commencement of class parallel class action suit till November.

This has led market participants to speculate that the lawyers think the case would have ended by then.

Similarly, a lot of optimism persists that the SEC might concede defeat to Ripple. In an interview, the SEC chair was quoted saying that the securities regulator was not insurmountable and was bound to lose some cases.

The contentious XRP token meanwhile has been trading below the $1 mark for a while now. On the day, XRP is trading at $0.78, up 6% in last week.