• Ripple submitted a filing on April 13th countering the SEC’s rejection of its fair notice defense.
• The SEC filed a letter of supplementary authority citing an opinion from a District of Massachusetts court concerning a case against Commonwealth Equity Services LLC.
• The court acknowledged that a 50-year-old Supreme Court precedent for disclosure requirements was enough to provide fair notice in the case and Ripple argued that the Howey Test and its progeny provide adequate guidance.
Ripple Challenges SEC’s Rejection of Fair Notice Defense
Ripple responded to the SEC’s arguments pertaining to the rejection of its fair notice defense in a recent filing, providing a compelling rebuttal. The San Francisco-based blockchain company insists that the case cited by the SEC did not provide any grounds to dismiss the fair notice defense. Furthermore, Ripple argued that the securities regulator failed to give adequate notice concerning its disclosure obligations.
SEC Files Letter of Supplementary Authority
On Monday, April 7th, The US Securities and Exchange Commission (SEC) filed a letter of supplementary authority supporting its motion for summary judgment citing an opinion from a District of Massachusetts court concerning the case against Commonwealth Equity Services LLC – SEC vs. Commonwealth. The judge ruled that defendant violated Investment Advisers Act 1940 relating to disclosure failures; furthermore they rejected their claim of fair notice defense.
Court Acknowledges 50-Year-Old Supreme Court Precedent
In acknowledging this ruling, The court stated that there was enough evidence provided by way of 50 year old Supreme Court precedent for disclosure requirements to justify their decision on fair notice defence in this specific case. This argument is one which could be applied similarly in other cases such as Ripple’s dispute with The SEC where they argue that Howey Test and its progeny are sufficient enough guidance when it comes to disclosing information regarding investments or transactions involving digital assets such as XRP tokens .
Ripple Disagrees With SEC Argument
In response however, Ripple has disagreed with this argument; insisting that The Howey Test does not constitute as sufficient guidance in regards to investing or trading digital assets such as XRP tokens . Despite this disagreement however both parties have agreed upon proceeding with mediation moving forward towards finding suitable solution for both sides involved – whether it be via settlement or otherwise .