The Judge for the Securities and Exchange (SEC) lawsuit against Ripple Labs (XRP), Analisa Torres provided two important rulings this past week.
Judge Denies the SEC’s motion to strike the Fair Notice Defense from Ripple
Ripple has argued that it was not given ‘fair notice’ by the SEC that it may consider the XRP token as a security, therefore Ripple was denied due process. The Southern New York District Court Judge denied the SEC motion to dismiss the defense thereby providing assurance that the defense of no ‘fair notice’ is a viable defense in the lawsuit.
Many experts following the case believe this is one of the most important judgements in the case and a very positive development for Ripple XRP. Attorney and legal expert Jeremy Hogan who has closely followed and reported on the case from the onset recently tweeted in response to the motion denial “BOOM! (And I don’t use that term lightly).
Judge also denies a motion set forth from Ripple
Judge Torres has also denied a motion filed by Brad Garlinghouse, CEO of Ripple and Chris Larsen, the Executive Chairman of Ripple. This motion was to dismiss the case against Ripple XRP for aiding and abetting the unregistered securities sales. In the motion, Ripple clams even if the charges were true, it would not create a winnable case for the SEC.
Garlinghouse has applauded the denial of the SEC’s motion and states it was a “Huge Win” in a recent tweet this past weekend. There are likely to be several more important rulings to come before the case ends or a settlement occurs, however these were two very important developments that could sway the direction of the case.
The case remains to be closely followed by XRP and crypto enthusiasts as it is a rare scenario that a case brought forth by the SEC carries on in trial without settlement outside the courts and the overall outcome could have larger ramifications for the entire crypto industry.