Latest Supreme Court Decision Helps Ripple’s Fair Notice Argument in XRP Litigation, Creating the Largest Turn to Date
Ripple stated in court filings that the recent U.S. Supreme Court decision in Bittner v. United States supports its fair notice position.
Friday, Ripple filed a supplementary letter supporting its motion in the continuing case with the SEC with the U.S. District Court.
Ripple stated that the Supreme Court’s Tuesday decision in the Bittner case, which limits the government’s power to levy fines on US taxpayers who fail to register overseas bank accounts, emphasized that the SEC could not offer “fair notice” before initiating its enforcement action.
In the Bittner case, the Supreme Court declared that “a reasonable notice should be provided to the world in terms that the common world can comprehend” about what the law plans to do if a specific border is crossed.
During the pre-trial portion of the SEC vs. XRP action, Ripple’s attorneys proved that the SEC withheld fair notice on crypto assets, not only XRP. As Ripple announced its intention to submit a proper notice defense, the SEC launched a rush of papers to halt the firm. But, the court eventually allowed Ripple to clarify its fair notice argument.
This argument says that the SEC did not inform Ripple that its acts violated the law before initiating legal action. The company said that the United States’ top financial cop failed to provide a clear framework for applying securities laws to the rapidly expanding crypto business, creating regulatory confusion in the market.
Ripple has requested that presiding judge Analisa Torres consider the Supreme Court’s decision when determining whether Ripple, along with its current and former CEOs Brad Garlinghouse and Chris Larsen, respectively, violated the law by selling the XRP cryptocurrency as unregistered securities and raising over $1.3 billion.
Creator of the cryptocurrency legal news website Crypto-Law John E. Deaton, who is also an amicus curiae in the XRP lawsuit, recently speculated that Ripple issued this letter now because they anticipate the SEC will win. Deaton mentions that the U.S. Supreme Court decision was given just four days ago. He argues that this court’s ruling validates Ripple’s claim that the lack of fair notice violates the Due Process provision of the United States Constitution.
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