SEC v. Ripple: Win on Fair Notice could “save the industry from the SEC”, said top lawyer

Rick Steves

“For the most part, the SEC will not be able to bring any more crypto lawsuits if that happens, and the SEC is funded by the fines and such from these lawsuits so…read between the lines”.

The SEC v. Ripple lawsuit is holding its most important battle so far: the Fair Notice defense which argues the firm had no reasonable fair notice from the SEC on whether selling XRP would constitute an illegal securities offering.

The regulator has motioned to strike that defense and its “main argument seems to be that Ripple cannot even raise a Fair Notice defense”, said the XRP community’s ‘favorite attorney’ Jeremy Hogan.

The SEC argues that there is a case precedent that states that a Fair Notice defense cannot be raised in this exact situation, citing the Kik Interactive case held a few years ago.

“Indeed, Judge Hellerstein recently evaluated an Upton defense based on facts materially indistinguishable from those alleged by Ripple, and found the defense to fail as a matter of law”, the SEC stated.

That’s where attorney Jeremy Hogan disagrees. “Lucky for us, I have read all of the Kik Interactive pleadings and this is just not true. In fact, I just pulled it up on Courtlistener to show you”, he said in a Youtube video.

“Right there at entry #26 you can see that in the KIK Interactive case the SEC also filed a Motion to Strike the Defense, called a Motion for Judgement on the Pleadings, here. And if you go down to entry 29 you can see that the Judge denied the motion without prejudice.”

While the Judge eventually did rule against Kik, it was not “on the pleadings” but later at summary judgment. “And that’s where I also think Ripple’s Fair Notice defense will be decided. Prediction: Motion to Strike Denied”, Mr. Hogan stated.

What if Ripple wins on the Fair Notice defense?

Attorney Jeremy Hogan was clear about the legal consequences of a win on the Fair Notice defense: “It becomes persuasive authority for any crypto company the SEC sues from this point forward. If the Fair Notice defense survives and Ripple wins, the SEC is going to have an uphill battle winning any other lawsuit they bring.

“But it’s even bigger than that. . . Even if Ripple loses the Fair Notice defense, they can appeal the ruling. And if an appellate court determines that Judge Torres was wrong and Ripple did not have Fair Notice, then the SEC is now really in trouble because that ruling is binding on every crypto lawsuit that comes along.

“For the most part, the SEC will not be able to bring any more crypto lawsuits if that happens and, the SEC is funded by the fines and such from these lawsuits so…read between the lines”, he explained.

The Fair Notice defense is the one the SEC is most worried about because that could potentially save the industry from the regulator and “it’s the defense that would lead to the case settling/resolving before a hearing on Summary Judgment“.

Of course, it wouldn’t prevent the SEC from filing complaints against crypto schemes such as BitConnect. The regulator has recently filed charges against it’s promoters.

Although XRP holders have no stake in Ripple Labs, the fluctuating price of the cryptocurrency has led its owners to follow the SEC v. Ripple lawsuit intensely.

A lot has been said in the past and the final result of the lawsuit is anyone’s guess for the time being. Still, Ripple Labs is most likely analyzing its options for any settlement deal or decision by the court.

In October 2020, co-founder Chris Larsen said that the firm might be moving its headquarters overseas. “To be honest with you, we’re even looking at relocating our headquarters to a much more friendly jurisdiction.”

In early April 2021, CEO Brad Garlinghouse told CNN the firm is ready to march on without the XRP if it loses the legal battle against the US regulator.

So, to answer the question ‘What if Ripple loses the lawsuit?’: no one knows besides them, but relocating to a friendlier jurisdiction is most likely to serve the interests of XRP holders in such a scenario.

For now, we’ll have to stick to the lawsuit agenda.

Read this next

blockdag

BlockDAG Dominates with New Dashboard Features and Enhanced Roadmap, Eclipsing Solana and Polygon Developments

Discover how BlockDAG’s cutting-edge dashboard and promising 30,000x ROI outshine developments in Solana and Polygon, positioning it as a leading investment.

blockdag

BlockDAG Dashboard Update, A Step Towards Transparency Fuels FOMO in Crypto Whales, Presale Garners $32.8M Amid Retik Finance Listing

Discover why investors are choosing BlockDAG after its dashboard update and $32.8M presale, surpassing Retik Finance listing on Bitrue.

blockdag

Discover 5 Altcoins to Skyrocket Your Wealth This Cycle 🚀

The bull run of 2024 ignites fresh excitement for anyone looking to increase their wealth.

blockdag

BlastUP Presale Hits $7M; Final Days to Buy $BLP

BlastUP, the premier launchpad on Blast, has confirmed its robust utility by successfully launching its first IDOs. As its presale nears completion, it continues to garner significant attention from crypto enthusiasts. The amount of funds raised so far is approaching 7 million, and BlastUP already boasts a large and passionate community of supporters.

blockdag

BlockDAG Network: The Mobile Mining Revolutionizing Crypto Mining

A Simple Guide on How to Mine BDAG and its Benefits.

blockdag

BlockDAG’s $600M Masterplan Shocks the World: Outperforms Retik Finance After Jaw-Dropping Piccadilly Circus Spectacle

Discover how BDAG dominates the global market as Retik Finance struggles at launch, showcasing a robust $600M growth plan and securing strong investor confidence.

Education

Top Business Ide­as for Success in 2024

Looking for the best busine­ss ideas to start in 2024? Our guide will help you find promising options. We­ cover sectors like digital, we­llness, and green innovations se­t for growth next year. 

Digital Assets

Coinbase seeks to dismiss SEC lawsuit citing new crypto laws

Crypto exchange Coinbase has renewed its efforts to appeal a judge’s ruling in its ongoing case with the U.S. Securities and Exchange Commission (SEC), citing recent legislative developments in Congress.

Digital Assets

Elon Musk mourns Kabosu, Dogecoin responds with price jump

Dogecoin (DOGE) price climbed on Friday after the passing of Kabosu, the Shiba Inu who inspired the meme cryptocurrency.

<