The SEC strikes ripple’s defense once again after it filed a letter of supplemental authority to battle with the “fair notice” defense that Ripple had. But can this be the final blow from the SEC? Let’s see in the ripple latest news today.
XRP got down by 2.44% in the past 24 hours to $0.7 after the market’s downtrend. As the popular SEC vs Ripple case is expected to be resolved in April, the SEC strikes Ripple’s defense once again with many wondering with previous expectations could dramatically change. The American regulator is using a strong move from another case to strike at Ripple’s key arguments. The SEC took John M Fife and five entities controlled by him to court in 2020 for selling $21 billion of penny stocks and gaining a profit of $61 billion without previously registering as securities dealers.
FIFE’s defense adopted the argument similar to Ripple’s saying that the SEC didn’t give them a fair warning and that the term “dealer” could be interpreted in numerous ways. Last month, the court denied this argument. The regulator now aimed to use the denial to strike at Ripple’s fair notice key Defense. Ripple’s defense argues that the regulator failed to notify them of a possible violation of federal securities laws and claimed that the term “investment contract” is being misused by the SEC saying that the regulator’s theory is that XRP is an investment contract is wrong on the facts and the law.
No other regulator determined that XRP is a security. The SEC is still using the FIFE case to insist that the term “investment contract” is bound by legal parameters since 1946. the cases however have distinct terms. The attorney Jeremy Hogan explained that the case outcome helps the SEC position in the Motion to Strike Ripple’s Fair Notice Defense so that the SEC filed it with the court.
The defendant tried to argue the “Fair notice” in order to dismiss the lawsuit and failed because the burden is quite heavy for a party that is moving to strike a pleading. However, Ripple’s CEO Brad Garlinghouse remained hopeful:
“Clearly we’re seeing good questions asked by the judge. And I think the judge realizes this is not just about Ripple, this will have broader implications.”
After the SEC filed the lawsuit against Ripple in 2020, XRP crashed dramatically and then continued to drop and lose ground but remains inside the top 10 crypto Ranking.
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