On April 12, 2023, the Ripple Defendants filed their Response to the SEC’s Letter of Supplemental Authority regarding the SEC’s Motion for Summary Judgment. The response was shared by James K Filan on his Twitter account, a former federal prosecutor who has been following the Ripple case closely and providing updates on the case.
Read Also: What is Stellar Lumens (XLM)?
#XRPCommunity #SECGov v. #Ripple #XRP The Ripple Defendants have filed their Response to the SEC’s Letter of Supplemental Authority regarding the SEC’s Motion for Summary Judgment. pic.twitter.com/SPWnzxhKxx
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) April 13, 2023
SEC’s Letter Of Supplemental Authority And Ripple Also Responded
The SEC had previously filed a Motion for Summary Judgment, arguing that its case with Commonwealth Equity Service provides additional authority for rejecting Ripple’s fair notice defence.
Responding to this claim, Ripple said, in the Commonwealth case, the defendant did not provide any evidence to support its defence that market participants lacked fair notice requiring them to disclose economic conflict of interest. Instead, Commonwealth cited SEC’s guidance and presented an expert who asserted that the agency’s guidance did not require certain disclosures.
According to Ripple, the Commonwealth case the SEC relies on to dismiss its fair notice defence is different from the evidence available in the ongoing lawsuit.
“Here, by contrast, there is abundant evidence, including extensive factual evidence from the SEC’s files and its communication with third parties, showing that reasonable market participants, trying to understand what the SEC would permit or prohibit, concluded that defendants’ offers and sales of XRP were not investment contracts and told the SEC so.”
Read Also: NOWPayments To Integrate Shibarium On Its Platform
The response also reiterates the Ripple Defendants’ arguments that XRP is not a security and that the SEC’s case is based on an outdated view of cryptocurrencies. The response states that XRP has a variety of use cases beyond mere investment and that the SEC’s attempt to classify it as a security would harm the development of the cryptocurrency industry.
Ripple’s Conclusion
The response concludes by urging the court to deny the SEC’s Motion for Summary Judgment and grant the Ripple Defendants’ Cross-Motion for Summary Judgment.
The Ripple case has been closely watched by the cryptocurrency industry, as it could have significant implications for the regulatory treatment of cryptocurrencies going forward. The case is currently pending before Judge Analisa Torres in the Southern District of New York.