After the firm’s general counsel Stuart Alderoty announced the court refused the US Securities and Exchange Commission’s move to strike its fair notice defence.
Ripple CEO Brad Garlinghouse said on social media that he believes the fintech startup has earned a “major success.”
According to Alderoty, the judgement showed that there is a “substantial doubt” over whether the SEC ever gave Ripple a fair warning that its XRP distributions, which have been ongoing since 2013, might ever be banned under securities law.
Ripple Claims It Did Not Receive A Fair Notice
Ripple said it did not receive fair notice that “its behaviour was in violation of the law, in contradiction of Ripple’s due process rights,” according to documents uploaded on social media.
On social media, Alderoty said that it’s “critical that the sun sets on the SEC’s “regulation by enforcement” strategy.”
The SEC’s lawsuit against Ripple and two of its executives claim they “raised over $1.3 billion through an unregistered, ongoing digital asset securities sale,” according to CryptoGlobe.
It had a detrimental influence on the price of XRP since, following the announcement of the lawsuit, most cryptocurrency exchanges began delisting the token to prevent any ramifications, reducing its liquidity.
Commissioner Hester Pierce of the Securities and Exchange Commission has reportedly stated that she feels the SEC’s case against Ripple would not result in the desired result.
According to legal expert Jeremy Hogan, Ripple’s lawyers expect the litigation to be settled between August 26 and November 18 this year.
Notably, since December 2021, XRP whale addresses with over 10 million tokens have amassed about 900 million $XRP, valued around $700 million at the time of writing, in the “second-largest” accumulation they have achieved in the last 5 years.