- Ripple formally filed a defense against the SEC lawsuit.
- SEC wanted to dismiss the lack of due process and fair notice excuse for the XRP token as a security.
The US Securities and Exchange Commission (SEC) proposed a motion against Ripple (XRP). Of note, the SEC filed the document purposely to reject the “lack of due process and fair notice” excuse for the XRP token as a security.
The regulator stated,
To the SEC’s knowledge, no federal court has accepted a defendant’s argument that the term fails to provide the constitutionally required notice; indeed, in the realm of offers or sales of digital assets, at least two district courts in this Circuit have rejected that argument.
Precisely, SEC mentioned two features about how Ripple’s fair notice denial will eventually cause bias on behalf of the Agency.
Yesterday, Ripple formally challenged the US SEC motion and it appears to have gotten a positive impact. Moreover, the Ripple counsel defended and questioned the SEC’s omissions and misrepresentations. According to Ripple, the SEC failed to disclose the key points of its accusation.
Also, Ripple counsel said that the ellipses that the SEC added to the document removed the word “both” from what is quoted. As per Ripple counsel, SEC omitted the ending of the quotation.
Continuously, the Ripple counsel added that the SEC also misinterpreted almost everything that Magistrate Judge Netburn said.
Talking about SEC, XRP holders’ lawyer John E. Deaton expressed that “it doesn’t take an expert to see that plenty is very wrong, very corrupt and very outrageous about the SEC’s lawsuit against Ripple”.