Why this critical Ripple defence may be tossed out of the XRP lawsuit

Spread the love

On April 6, the case between the United States Securities and Exchange Commission [SEC] and Ripple was resolved in Ripple’s favour. The San Francisco-based firm was given access to the SEC’s records and meetings about Bitcoin and Ethereum, all of which the regulator has listed as crypto currencies rather than shares.

As Ripple left the court on Thursday, its Chief Executive Officier Brad Garlinghouse noted,

“Today was a good day.”

The recent decision by U.S. Magistrate Judge Sarah Netburn may also be seen as a significant legal advance for Ripple, which is attempting to reinforce its “fair notice” protection in the pending litigation over the fraudulent selling of XRP in an unregistered securities offering. The SEC claims that XRP trades are “investment contracts,” and hence shares that must be registered under Section 5 of the Securities Act of 1933.

According to Attorney Jeremy Hogan who reviewed the hearing in a video, Ripple has moved to take a defensive position against the SEC’s claims, with Hogan adding that Ripple “lacked fair notice that its conduct was prohibited.”

“Ripple answered the SEC lawsuit with seven affirmative defenses and the most important one was Ripple’s 4th affirmative defense which is a Fair Notice claim which stems from the US Constitution and is a complete defense to a securities violations.”

The terms of the documents that lead to the recognition of Bitcoin and Ethereum as digital assets may provide an incentive for Ripple to demonstrate that XRP, too, is a digital asset and not a defence.

RECOMMENDED READ:  How do top NFT tokens such as THETA, ENJ, CHZ, and MANA compete with top altcoins?

Meanwhile, reading the judges in the room, Hogan clarified the favourable position that Judge Netburn would take. Hogan said, “With some conjecture,”

“Judge Netburn is NOT going to Order the SEC to spend hundreds of hours going over tens of thousands of documents relevant only to Ripple’s Fair Notice defense if she knows that the entire defense is going to be thrown out next month.”

He added,

“It’s THAT hearing and THAT defense that are crucial to Ripple and this is the first evidence we have that the Judge is NOT going to throw it out.”

With the chaos both within and outside the courthouse, the next hearing will be critical because it would highlight the judge’s stance on the case and cryptocurrency.

The XRP and Ripple communities have been celebrating this minor win as Ripple prepares for its critical battle. Indeed, others, such as lawyer Jesse Hynes, believe that this “offers hope” for Ripple and “what they’ll discover.”

 

 138 Interactions,  2 today

READ ALSO:
What are traders talking about Bitcoin’s latest all-time peak of $63K?

Bitcoin's price has surpassed $63,000 to set a new all-time record, but markets are divided in the short term. On Read more

If you want to buy Coinbase stock right now? Here’s how to get noticed before April 14th.

Retail parties can exchange Coinbase stock price activity on FTX in addition to purchasing Coinbase stock as it lists, but Read more

TIME has come for Bitcoin, as a publication has agreed to keep BTC on its balance sheet.

Grayscale Investments had over $47.1 billion in funds under administration at the time of writing, with the AUM of its Read more

Why Bitcoin bulls remain upbeat despite primary BTC market metric falls to a new low.

Bitcoin's long-to-short ratio has fallen to a five-month low, but bears aren't biting, indicating that bulls remain in charge of Read more

How to Trade Bitcoin Using the Money Flow Index

The Money Flow Index, or MFI, is a critical (but lesser-known) oscillator that can be used to perform technical analysis Read more

How enterprise blockchain applications are on the rise as companies becoming more aware of cryptocurrency.

Enterprise technologies that provide cross-border solutions and support the unbanked are gaining steam, and XRP, Stellar, and XinFin are seeing Read more

Decentralized finance is being tested by a major Thai bank.

Kasikornbank believes that asset-backed DeFi has the ability to generate economic value for Thailand. As part of its market growth Read more

Topps baseball card company and MLB working on official NFTs.

Topps Series 1 Baseball nonfungible coin collectibles will be released by the national card manufacturer in collaboration with Major League Read more

Physical Litecoin ETP will be listed on the German digital stock exchange.

Bitcoin and Ether ETPs are now available on the Deutsche Börse Xetra. The London-based ETC Group, which was responsible for Read more

How the use of blockchain technology has significantly increased the pace of rail trade between China and Europe.

Train cargos from China to Europe can now be shipped in days rather than months, thanks to the installation of Read more

Leave a Reply

Contact Us