- Ripple files a response to the SEC’s Letter of Supplemental Authority, arguing that the Commonwealth case cited by the SEC does not provide additional authority to reject Ripple’s fair notice defense.
- Ripple highlights the Upton case as a binding precedent that ruled in favor of the defendant’s fair notice defense, maintaining that the two cases are not comparable.
Ripple has filed a response to the U.S. Securities and Exchange Commission’s (SEC) Letter of Supplemental Authority, refuting the SEC’s arguments. The SEC cited a Massachusetts District Court opinion in the case against Commonwealth Equity Services LLC to support its motion for summary judgment. The SEC claimed that the decision confirms the Howey test does not require a separate fair notice to Ripple.
Ripple’s response detailed why the Commonwealth case does not provide “additional authority” for the SEC to reject the fair notice defense. Ripple’s defense team points out that, unlike Commonwealth, Ripple has presented extensive evidence from the SEC’s filings and communications with third parties, showing that reasonable market participants considered XRP not to be an “investment contract.”
Additionally, the applicability of the Investment Advisers Act in the Commonwealth case was undisputed, while it remains questionable whether the Securities Act applies to Ripple’s case at all. Ripple maintains that the two cases are not comparable, and the SEC’s reliance on the Commonwealth case is irrelevant. Ripple instead points to the Upton case as binding precedent, which ruled in favor of the defendant’s fair notice defense.
The quick response from Ripple is likely to prevent any delay in the summary judgment. As of the report, the XRP price traded at $0.5376, up 6.2% in the last 24 hours.