SEC vs Ripple - The Case Is Still Under Critical Argument!

SEC vs Ripple - The Case Is Still Under Critical Argument!

2022-01-08 | Daniel Smith

SEC vs Ripple - The Case Is Still Under Critical Argument!

The SEC (Securities and Exchange Commission) of the United States has submitted a letter of additional jurisdiction in support of its move to dismiss Ripple's critical "due notification" argument.

The current move, which might be pivotal in the highest observed court fight, was initially lodged in April.

The SEC cites a Dec. 20 judgment in the SEC v. Fife case, in which the Northern District of Illinois court granted the SEC's move to invalidate plaintiff John M. Fife's "due notification" argument.

In September 2020, the SEC filed a lawsuit against Fife and the five organizations he manages for failing to register as a securities dealer in an attempt to trade 21 billion freshly minted penny stocks for a gain of $61 million.

The plaintiffs' claim concerning how the SEC was required to alert them regarding the innovative understanding of the word "dealer" was dismissed by the court.

The SEC currently claims that the verdict gives it more ability to eliminate Ripple's crucial defense.

Ripple's "due notification" response is based on the notion that the regulator neglected to tell the business about its possible breaches of federal securities laws, whilst also criticizing the wide meaning of "investment contract."

Throughout the pre-trial portion of the dispute, Ripple attorneys also said unequivocally that the vagueness was detrimental to the whole industry.

During the one-year milestone of the case, CEO Brad Garlinghouse stated that bitcoin firms "ought not to be penalized" for requesting regulatory clarification.

The SEC stated in its motion to dismiss that it has been "indisputably" pursuing securities laws in the crypto space through criminal prosecutions, no-action notices, lectures, and staff advice.

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