Last updated on April 17th, 2023 at 10:31 am
Ripple vs SEC Update – In the early hours of April 14, Ripple filed a response to the last supplemental letter issued by the SEC in the case against them. In a recent turn of events, the blockchain giants Ripple counters SEC’s opposition to a fair notice defense.
The letter was shared via Twitter by James K. Filan, a United States defense lawyer. See the tweet below,
#XRPCommunity #SECGov v. #Ripple #XRP The Ripple Defendants have filed their Response to the SEC’s Letter of Supplemental Authority regarding the SEC’s Motion for Summary Judgment. pic.twitter.com/SPWnzxhKxx
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) April 13, 2023
Remember that the letter issued by the SEC highlighted its previous case with Commonwealth Equity Service. Saying that it provides additional grounds for rejecting the fair notice defense issued by Ripple.
Ripple responded to this claim in their new letter. They stated that the defendant did not provide any evidence in the Commonwealth case to back its claim that market participants failed to reveal inevitable “conflicts of interest.” Rather, Commonwealth pointed out SEC’s guidance and brought an expert who declared that certain disclosures are not required by the agency’s guidance.
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Ripple Asserts that Commonwealth’s Case is Different
Ripple maintains that the Commonwealth case which the SEC is relying on as the basis to dismiss its fair notice defense is different from the present case.
“Here, by contrast, there is abundant evidence, including extensive factual evidence from the SEC’s own files and its communication with third parties, showing that reasonable market participants, trying to understand what the SEC would permit or prohibit, concluded that defendants’ offers and sales of XRP were not investment contracts and told the SEC so.”
It also added that further evidence proves that the SEC was aware of the “widespread regulatory confusion” in the crypto community. Also, Ripple further claims that according to evidence, SEC continuously pressed the regulatory confusion by “offering vague guidance that differed from the Howey Test.”
Additionally, Ripple maintained that the two cases are not similar so it is not relevant for the SEC to brag that the “unbroken chain of district court decisions rejecting fair notice defenses on summary judgment in its enforcement actions” was added to the Commonwealth case.
Ripples Supplemental Letter
Remember that on March 4, Ripple submitted a supplemental to support its fair notice defense. Ripple cited in their letter a Supreme Court ruling in the case of Bittner v. US. In that ruling, two justices depended on the rule of lenity to give a verdict. The rule of lenity requires that “when a law is unclear or ambiguous, a court must apply the law in the manner that is most favorable to the defendant.”
As the Ripple vs SEC case continues to heat up, the crypto community expects a ruling which is predicted to come before May 6.
