The CEO of Ripple Brad Garlinghouse has revealed on social media he believes the fintech firm has scored a “huge win” after the firm’s general counsel Stuart Alderoty revealed the court denied the U.S. Securities and Exchange Commission’s motion to strike its fair notice defense.
Per Alderoty, the order revealed there’s a “serious question” as to whether the regulator ever provided Ripple with a fair notice that its XRP distributions, which have been ongoing since 2013, would ever be prohibited under securities law.
According to documents shared on social media, Ripple asserted it did not receive fair notice that “its conduct was in violation of law, in contravention of Ripple’s due process rights.” Alderoty added on social media it’s “imperative that the sun sets on the SEC’s “regulation by enforcement” approach.”
As CryptoGlobe has been reported, the SEC’s lawsuit against Ripple and two of its executives alleges they “raised over $1.3 billion through an unregistered, ongoing digital asset securities offering.” It negatively impacted the price of XRP, as after the lawsuit was announced most cryptocurrency exchanges started delisting the token to avoid any repercussions, affecting its liquidity.
Some exchanges, however, sided with Ripple on the lawsuit, arguing that the SEC’s move hurt XRP investors. Crypto exchange Uphold pointed out that the SEC’s goal is to protect consumers, and believes it’s hard to see “how a judgment rendering XRP essentially worthless and inflicting billions of dollars of losses on retail investors” would square with that goal.
SEC Commissioner Hester Pierce has reportedly revealed she believes that the regulator will not get the outcome it’s looking for in its lawsuit against Ripple.
Ripple’s lawyers, according to legal expert Jeremy Hogan, expect the lawsuit to be over sometime between August 26 and November 18 of this year.
Notably, XRP whale addresses holding over 10 million tokens or more have managed to accumulate close to 900 million $XRP, worth around $700 million at the time of writing, since December 2021 in the “second-largest” accumulation, they have made over the last 5 years.
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