SEC v. Ripple: Lack of clarity admission is “gift from the heavens” for Ripple and XRP

Rick Steves

“I mean, you can litigate a hundred cases and never get a gift like this letter and I say it’s a gift from the Heavens because you know that the Commissioners could never comment on pending litigation.”

“Everyone in the XRP community (including myself) owes a debt of gratitude to Commissioner Pierce/Roisman for telling the truth, first and foremost, AND in gifting Ripple this letter from officials at the SEC. It takes bravery to do that, knowing it would be used against the SEC”, said attorney Jeremy Hogan on Twitter.

The lawyer was commenting on the recent statement from SEC Commissioners Hester Peirce and Elad Roisman in connection with the SEC’s settled action against Coinschedule. The document was included in a letter from the individual defendants’ counsel as part of their motion to dismiss the case against them.

“This is the best piece of evidence we’ve seen on the Fair Notice Defense thus far and it would be Exhibit Numero Uno in my Motion for Summary Judgment”. Mr. Hogan added.

“Imagine you are the Judge deciding whether Ripple had “Fair Notice” it was violating the law and you look in the file and see a letter from 2 out of the 5 SEC heads stating essentially that “Not only Ripple didn’t have Fair Notice, NO ONE had or has Fair Notice.”

Later, in a video published on Youtube, Mr. Hogan provided a more in-depth analysis, noticing that the Fair Notice defense has come to the forefront.

The Hinman deposition is scheduled for July 27, although the SEC plans to object to any question that could fall under the deliberative process privilege.

SEC v. Ripple angers XRP holders as rival Stellar (XLM) mixed in “love triangle” over MoneyGram

 

Now, this statement from two SEC Commissioners is likely to tip the balance in the SEC v. Ripple and the lawsuit against Brad Garlinghouse and Chris Larsen.

“And it’s relevant to both, boy is it relevant, first for the individual defendants because the standard, in that case, is that the SEC has to prove that “the Individual Defendants knew or recklessly disregarded that Ripple’s offerings and sales of XRP required registration as securities and that those transactions were improper.”

That legal standard is similar to what Ripple has to prove in its Fair Notice defense, according to the lawyer. Ripple’s claim is that it “did not have, and Plaintiff failed to provide, fair notice that its conduct was in violation of law, in contravention of Ripple’s due process rights.”

Mr. Hogan explained why Ripple Labs hasn’t filed this letter yet: “Ripple is going for the big win – summary judgment which will provide case precedent for it and all other crypto currencies. The individuals are just trying to get out fast. But by law you cannot file for summary judgment or at least have it heard, until discovery is complete and we have another couple months before discovery is closed in the Ripple case.”

The attorney linked to the XRP community then pointed to third parties “people” and “marketplaces” which limits the SEC’s moves. Instead of claiming its their personal opinion and has no legal effect, the two SEC Commissioners letter indicates that their understandings are based on discussions with people from the industry.

“I mean, you can litigate a hundred cases and never get a gift like this letter and I say it’s a gift from the Heavens because you know that the Commissioners could never comment on pending litigation.”

“And you know that Ripple could never get the Judge to make them sit for deposition, and you know that with Judicial Notice this letter had to be attached to another case like the case that just settled so that was a case the Commiissioners could comment on and they took that opportunity to put out thoughts on the confusion that exists in the marketplace.”

Also ahead in the SEC v. Ripple case is the deposition of William Hinman, July 27. Despite the probable stream of objections claiming privilege, there are expectations that the ex-SEC Director will help clarify what happened during the time of his speech in 2018 when he said Ether is not a security.

Read this next

Institutional FX

Deutsche Bank goes live with its FX pricing and trade engine in Singapore

Deutsche Bank has gone live with its electronic foreign exchange pricing and trading engine in Singapore, where demand for currency trading among institutional players is on the rise.

Retail FX

CySEC extends the suspension of Depaho license until November 19

The Cyprus Securities and Exchange Commission (CySEC) has decided to extend further the suspension of the license of the Cyprus investment company Depaho Ltd, which operates the retail FX brands GTCM, FXGM and TRADEAPP.

Retail FX

CAPEX.com introduces QuantX, a tool to build automated portfolio

Multi-licensed broker CAPEX.com has rolled out a new portfolio platform, QuantX, which uses a client’s risk tolerance assessment and other criteria to create fully customized investment portfolios.

Digital Assets

Ripple scores major win: Judge orders SEC to explain…a lot

The SEC is ordered to explain, among other things, how the Howie test applies to XRP, what is the status of Ether and Bitcoin, and the sale of XRP as investment contracts.

Retail FX

Trade CFDs on 900+ of the Biggest Companies this Earnings Season with HotForex

Traders with the internationally acclaimed multi-asset broker HotForex can trade CFDs on the stocks of over 900 companies during Earnings Season with tight spreads, flexible leverage, negative balance protection and the many other advantages that have made it an honest, open and transparent broker of choice to over 2.5 million traders around the world.  

Digital Assets

Polygon (MATIC) double spend bug yields $2 million bounty for developer

Polygon, the Layer 2 solution on top of Ethereum, has recently paid out the highest ever bug bounty in history to a whitehat developer Gerhard Wagner for pointing out a double-spend bug in the network which could have resulted in huge losses if it had been exploited.

Digital Assets

KuCoin aims to become largest social trading platform in crypto

KuCoin was founded in September 2017 and it currently provides Spot trading, Margin trading, P2P fiat trading, Futures trading, Staking, and Lending to its 8 million users in 207 countries.

Digital Assets

Apifiny’s crypto trading network adds Instant Transfers for best bid and offer

Instant transfers significantly enhance Apifiny Connect, allowing traders to more efficiently buy and sell on 25 connected markets across six continents.

Retail FX

iFOREX clients can follow two experts trading in real time

Trading Rooms’ access will be free of charge for active traders who open an account with the broker.

<