• The SEC filed a lawsuit against Ripple in 2020, accusing it of selling XRP tokens illegally.
• Ripple recently submitted a letter to the US District Court citing a Supreme Court ruling in its favor for the fair notice defense.
• The XRP community has expressed slight optimism about this development, but the token’s price still fell by 3%.
Ripple Sues SEC Over Fair Notice Defense
The U.S Securities and Exchange Commission (SEC) has filed a lawsuit against Ripple Labs Inc., alleging that it sold unregistered securities in the form of XRP tokens. In response, Ripple submitted a letter to the US District Court citing a recent Supreme Court ruling in its favor regarding its fair notice defense. This news has led to some optimism among the XRP community, although the token’s price still dropped by 3%.
SEC’s Position On Crypto Regulation
The SEC is being scrutinized for how they are regulating the cryptocurrency space as they have been filing new actions against other industry members. John Deaton, an attorney representing XRP holders, believes that this action taken by the SEC is seen as an aggressive stance towards cryptocurrencies and urged companies who are currently engaged in legal disputes with them to “exchange ideas” about their actions.
Ripple’s Argument
Ripple used Bittner vs. SEC as an example to emphasize on issuing fair warning globally and asked Judge Analisa Torres to take this into consideration when making her decision. They argued that prior advice provided by government entities appears to contradict with their current litigating position which significantly supports their fair notice defense plea.
XRP Community Reactions
The XRP community has expressed slight optimism over this development despite seeing a drop of 3% in price over one week period after receiving news about Ripple’s letter submission at court. However, since there is no clear resolution yet from court proceedings, many investors remain skeptical about any positive outcomes from this legal battle between Ripple and SEC .
Conclusion
The case between Ripple and SEC has been going on for over two years now with no end near sight yet . Although there was some hope when Supreme Court ruled in favor of Ripple’s fair notice defense , there is still uncertainty surrounding whether or not it will be enough for them win against regulators . As long as there is no clear resolution yet from court proceedings , many investors remain skeptical about any positive outcomes from this legal battle between both parties .