Ripple Lawsuit: SEC Files New Arguments In Support Of Summary Judgment

Key Points:

• In a legal dispute with Ripple Labs, the SEC has submitted further support for its pending Petition for Summary Judgment.
• A recent District of Massachusetts court case, according to the agency, strengthens the regulator’s stance on fair notice defenses.
• The community is finding that these are not convincing.

The Securities and Exchange Commission (SEC) of the United States has filed a Letter of Additional Authority in support of its petition for summary judgment in its litigation against Ripple Labs.

In particular, the SEC has submitted a letter of additional authority to Judge Analisa Torres in further support of its pending Request for Summary Judgment, as provided by pro-XRP U.S. defense lawyer and prominent commenter on the issue James K. Filan in a tweet on April 11.

The SEC references in the letter to an April 7 decision by a District of Massachusetts court, which allows the financial watchdog’s move for summary judgment and refuses the defendant, the brokerage business Commonwealth Equity Services,’ cross-motion for summary judgment.

According to the agency, this opinion supports the SEC’s case against the blockchain company because it refers to the alleged violation of federal securities laws, as well as including the ‘fair notice’ argument advanced by the defendants in both cases but rejected by the court in the Commonwealth lawsuit. The agency maintains that the Howey case and its predecessors presented Ripple with sufficient fair notice to render its constitutional defense ineffective.

As a result, the SEC claims that the commonwealth decision provides greater authority for rejecting Ripple’s fair notice position and approving the SEC’s summary judgment petition.

The court agreed with the SEC, ruling that the defendant had violated the Investment Advisers Act of 1940’s negligence-based requirements by failing to disclose certain conflicts of interest.

The XRP legal community sees no compelling arguments in the letter. Attorney Jeremy Hogan views technology as important to the case. If Judge Torres understands technology and decentralization, he believes Ripple will win.

At the same time, lawyer Bill Morgan dismissed the latest letter from the SEC’s defense, claiming that there were no parallels between the two instances and hence no cause for alarm.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News