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The legal battle between Ripple Labs and the Securities and Exchange Commission (SEC) is intensifying day by day. As both parties prepare for a possible summary judgment, Ripple’s legal team recently filed a response to the SEC’s Supplemental Authority Letter. This response challenges the fair notice argument and reliance on the Howey precedent. Let’s take a closer look at the ins and outs of this response.
Ripple’s Response to the SEC’s Supplemental Authority Letter
As voices rise to disentangle fact from fiction in the Ripple case and the SEC, Ripple’s legal team was quick to file a response to the SEC’s Supplemental Authority Letter. She argues that the precedent set by the Howey case does not provide sufficient fair notice to defeat their constitutional defense.
Ripple argues that the Commonwealth case ruled out a fair notice defense at summary judgment. This happened while the SEC had been aware of the relevant practices for more than twenty years. Moreover, the SEC had not established any rules relating to the specific conduct in question.
According to Ripple, this case reinforces their case for insufficient SEC notification regarding Ripple Labs’ disclosure obligations. Due to several factors, including this one, some argue that Ripple will win its case against the SEC.
SEC Says Its Recent Court Victory Weakens Ripple’s Main Argument
The SEC says Ripple’s fair notice argument is without merit, based on a recent court victory against Commonwealth Equity Services.
Ripple’s defense relies on a recent Supreme Court decision, Bittner v. UNITED STATES. In that case, the court ruled in favor of Bittner, indicating that fair notice had not been given.
However, the SEC believes that the long-standing precedents set in Upton v. SEC, which established the Howey test, gave Ripple ample time to comply with securities laws.
As the legal battle between Ripple Labs and the SEC rages on, the outcome of this case could upend the market and the regulatory framework for digital assets. Arguments from both sides raise key questions about fair notice and compliance with securities laws. Either way, this lawsuit is about to go down in history as a watershed moment in the regulation of cryptocurrencies and digital assets in the United States. Prepare the popcorn!
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Fascinated by bitcoin since 2017, Evariste has constantly researched the subject. If his first interest was in trading, he is now actively trying to understand all the advances centered on cryptocurrencies. As a writer, he aspires to consistently deliver high-quality work that reflects the state of the industry as a whole.
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The comments and opinions expressed in this article are the sole responsibility of their author, and should not be considered as investment advice. Do your own research before making any investment decision.
