Ripple Faces New Challenge From SEC Over Fair Notice on XRP
The Security and Exchange Commission has filed a new letter asking the court to disregard the argument of Fair Notice in the case of SEC against Ripple. If the plea gets furthered in the court, this could give a vantage point for the SEC in the case that is inclined towards the defendant, that is Ripple. The letter by the SEC was addressed to Judge Analisa Torres and reportedly quoted a case from the past.
This brings up the case between SEC and Keener, which primarily brought the argument of Fair Notice. The defendant, in this case, was said to have failed to register lawfully as a ‘dealer’ of securities. The SEC is quoting the Fair Notice argument denied by Keener to invalidate the claims of Ripple regarding the same.
The Keener defense claimed that they did not receive a warning or notice from the SEC that could inform them about unlawful conduct. Furthermore, the lack of notice was used to declaim the ‘dealership’ in the keener case. The Argument included that the statutory language used by the SEC was ambiguous, and the federal body itself had several interpretations of them. Moreover, the position of the SEC is in contrast to its previous stances regarding the same.
However, the court passed the judgment in favor of the SEC and stated that the statutory language of the Exchange Act applies to the definition of ‘dealer.’ Seeing as the situation is similar to that of the Ripple case, the SEC has written the letter asking the court to dismiss any claims of Ripple related to the Fair Notice argument.
Ripple’s defense, on the other hand, is strongly claiming that the SEC has failed to issue a fair warning that the conduct of Ripple could be taken as the unlawful sale of securities. The previous statements from attorney Jeremy Hogan claim that the case is trying to rescue the digital asset industry from the restraining order of the SEC. They are also hopeful of setting a precedent against the SEC that would prove beneficial for the whole digital asset environment in times to come.
Previously this month, the SEC has also filed a letter quoting the SEC vs. Fife case where the defendant moved the argument with the fair notice aspect. However, the court still sided with the SEC in this case. According to experts, the Fife case was entirely dependent on this only argument and is not entirely similar to the Ripple case. The SEC here is desperately trying to strike off the Fair Notice argument due to its contracting positions regarding that. If everything goes well, even the Fife case would be able to reopen with a positive defense in the future. According to XRP projections, Ripple has a positive outlook ahead.