- Ripple argues that the US Supreme Court ruling in Bittner v. The United States stands behind his “fair notice” defense.
- The “fair notice” defense contends that the SEC failed to clearly notify Ripple that its actions violated the law before taking legal action.
- The final decision on whether Ripple broke the law by raising more than $1.3 billion after selling the XRP cryptocurrency as unregistered securities rests with Judge Analisa Torres.
The lawsuit filed by the United States Securities and Exchange Commission (SEC) against Ripple, a San Francisco-based blockchain company, has been the subject of various discussions and developments recently. In court filings, Ripple argued that the recent US Supreme Court ruling in Bittner v. The United States reinforces its “fair notice” argument, which could be a key point for the company’s defense in the ongoing trial.
In the letter filed last Friday in the US district court, Ripple noted that the recent US Supreme Court ruling in the Bittner case highlighted that the SEC failed to provide “fair notice” before initiating its enforcement action. . Ripple argued that this ruling supports its own “fair notice” defense and that the SEC failed to notify Ripple that its actions violated the law before taking legal action.
The “fair notice” defense argues that the lack of clear notice about how securities laws apply to cryptocurrency assets caused regulatory uncertainty in the marketplace. Ripple contends that the SEC failed to formulate a clear framework for the growing cryptocurrency industry, making it difficult for blockchain companies to comply with regulations.
The US Supreme Court noted that “fair warning must be given to the world, in language the common world will understand, of what the law intends to do if a certain line is crossed.” Ripple contends that the SEC failed to provide this fair warning before taking legal action, which violates the Due Process Clause of the US Constitution.
The final decision on whether Ripple, along with its current and former CEOs Brad Garlinghouse and Chris Larsen, respectively, broke the law by raising more than $1.3 billion after selling the XRP cryptocurrency as unregistered securities, now depends on Judge Analisa Torres. If the judge decides that Ripple sold XRP as an unregistered security, this recent US Supreme Court ruling would give the company’s “fair notice” defense “a little more muscle”.
Although the lawsuit has been protracted, the recent US Supreme Court ruling is a key point for Ripple’s case. The final decision on the lawsuit could take up to two months. In any event, if the judge executes the summary judgment, she will have a major impact on determining which cryptocurrencies should be classified as securities under US federal securities laws.
