In the ongoing legal dispute between the U.S. Securities and Exchange Commission (SEC) and Ripple, former SEC official John Reed Stark has informed the XRP Army of a recent development.
The SEC cited an April 7 decision in its case against Commonwealth Equity Services for alleged disclosure violations in a letter to the court.
According to Stark, The letter advises the court of the inadequacy of Ripple’s so-called “fair notice” defense and stresses that ignorance of the law is “no excuse.”
U.Today reports that the SEC believes Ripple has been put on fair notice that it must register with the SEC since the Howey Test applies because of the Commonwealth judgment.
Stark remarked that the SEC has taken unprecedented steps to express its stance on digital assets.
The regulatory body has communicated its concerns about cryptocurrencies, digital trading platforms, and other digital asset products and services via multiple channels.
In the context of such a concerted SEC effort for crypto-related transparency, he added, claiming a lack of clarity and fair notice seems “disingenuous” and “ill-advised.”
The verdict in the Ripple case could establish a precedent for how digital assets are classified and regulated in the United States, which could have a significant impact on the cryptocurrency industry.
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