Stuart Alderoty, Ripple’s chief legal officer, has expressed confidence that the United States Court of Appeals for the Second Circuit will either uphold or expand the previous ruling issued by Judge Analisa Torres in Ripple’s favor. This ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) centers around whether Ripple’s sales of XRP tokens violated U.S. securities laws.
According to Alderoty, the best that the SEC could hope for is for the appellate court to remand the case back to the lower court, and he considers this a long shot. This is another crucial procedural ruling that strengthened Ripple’s position in the case of Judge Torres rejecting the SEC’s application for an interlocutory appeal in October.
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Fair Notice Defense Could Resurface
Judge Torres explicitly pointed out at the time when she stated there would be no effect on Ripple’s defenses, including the defense of “fair notice,” if the case were dismissed and remanded for further proceedings. The fair notice doctrine, which Ripple invokes, is anchored on the proposition that the defendant, a regulated entity, lacked adequate notice that its conduct would be unlawful. Although the court failed to deliberate on Ripple’s fair notice defense concerning programmatic sales, it recognized that these questions could be considered if the case goes to the District Court.
Nonetheless, the court dismissed Ripple’s assertion that the SEC had been uncommunicative on matters related to institutional sales of XRP. That’s why Ripple won at least one crucial point in its lawsuit against the SEC when Judge Torres dismissed the programmatic sales of Ripple to retail exchanges as a violation of securities laws.
Amid its legal battles, Ripple is confident, with Alderoty driving hard on the fair notice defense argument as the case progressed. The result could have significant consequences for Ripple and the general crypto market.
Ripple’s battle with the SEC continues to unfold, with significant legal ramifications hinging on the upcoming decision from the Second Circuit Court.
Also Read: SEC Misses Deadline but Files Appeal Against Ripple
