Ripple took a major win yesterday. US judge Analisa Torres has rejected the SEC’s motion to remove Ripple’s fair notice defense. After the ruling, the XRP price immediately shot up by more than 10%.
Ripple achieves a very important victory
The SEC filed a motion last April to have Ripple’s fair-notice defense dropped. The fair notice defense will force the SEC to disclose information about the financial watchdog’s communications since 2013. For the sake of clarity, we explain below what the fair notice defense entails.
The Fair Notice defense focuses on whether Ripple received a fair notice from the SEC about whether the sale of XRP tokens was an illegal sale of securities (security). According to Ripple, the SEC has known about the plan for the sale for a long time and has never stopped Ripple. So they never got fair notice from the SEC that what they were doing was illegal. Years and years later, the SEC suddenly started a lawsuit.
The Securities and Exchange Commission wanted to block this defense, but the judge has now put a stop to it. And that could turn out to be very positive for Ripple.
If you weren’t paying attention then, you should be now. Huge win for Ripple today! https://t.co/dMeUQuIPHM
— Brad Garlinghouse (@bgarlinghouse) March 11, 2022
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The SEC is out to delay the lawsuit
In that case, the court was also convinced that the SEC was on a mission to implement delaying tactics by increasing the time, cost and complexity before the case could go to full trial, hence the SEC’s decision to drop the motion. point.
“The court will not conclude at this early stage of the case that Ripple’s defense is invalid. Accordingly, the SEC’s motion to discontinue Ripple’s fair notice affirmative defense is DENIED.”
“Today’s ruling makes it clear that there is a serious question as to whether the SEC has ever given Ripple a fair notice that the distribution of XRP — since 2013 — would ever be banned under the securities law.” So said the general advisor of Ripple.
XRP price rises by 15 percent
Immediately after the good news from the lawsuit, the XRP price started to rise. The Ripple price rose by more than 15 percent in a few hours. It reached a high of USD 0.84 around 3am. Since then, the price has fallen again, making 1 XRP token worth about $0.79 at the time of writing. That is still 7 percent higher than a day ago.
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