The world of digital coins has been sailing the stormy market cycle. Which has been throwing tantrums on digital assets in the crypto directory. Out of the myriad of cryptos, the lawsuit ridden digital asset XRP has been sailing arguably the most treacherous sail. The legal brawl of Ripple and the U.S SEC has been going on since like eternity.
The lawsuit betwixt Ripple and the U.S SEC comes across another twist, post appointment of an enforcement counsel. With the SEC filing a letter of supplemental authority against Ripple’s fair notice.
Which has taken a toll on the XRP community, who have been fretting over the implications in future hearings. On the other hand, XRP savvies voice for Joe Rogan’s podcast with John E Deaton as a guest.
Is The SEC Rolling Up Its Sleeve To Take Over Ripple’s Stance?
The U.S Securities and Exchange Commission has filed a letter of “Supplemental Authority”. In support of its motion to strike Ripple’s fair notice of defense. The SEC is employing the verdict from a case with a similar fair notice, in support of its own case.
The case which SEC is referring to in the filing, is the “FIFE case”. The FIFE case was between the SEC and John M Fife and his five entities. The SEC cites that the FIFE case was repudiated at the pleading stage. Adding that the dismissal was despite acknowledging the lack of binding authority constructing the term “Dealer”.
The SEC intends to strengthen its stance in the case, through the FIFE case. The regulating body cites that, In Ripple’s case, binding authority constructing the term “investment contract” has been in existence since 1946. W.J Howey Co., 328 U.S at 298-99. Further citing that FIFE provides additional authority for striking Ripple’s fourth affirmative defense.
Will The Voice Of The XRP Army Go Unheard?
Jeremy Hogan in a series of tweets cites that, in the Fife case the defendants tried to argue “Fair Notice” in order to dismiss the lawsuit, which failed. Because the burden was pretty high on a party moving to strike a pleading.
On the other hand, the Ripple case is very different from the Fife case. As it is the SEC that has been attempting to strike the affirmative defense of fair notice, and it has a burden to meet.
Renowned American journalist believes 2022 will likely be the biggest narrative in the crypto industry, with the Ripple’s legal brawl terminating. He cites that Ripple’s triumph will cease SEC’s power over the crypto industry.
While SEC’s win could result in the commission going after Ethereum. On the contrary, the XRP army has been voicing for Joe Rogan’s podcast with John Deaton as a guest.
Summing up, although the move by SEC is a major and notable one in retaliation against Ripple. In legal terms, it holds little value, as both the cases are distinct in their own terms.
Moreover, the jurisdiction considers evidence over speculations, and verdicts of other cases. Therefore, the filing has little to worry about, and the next hearing could be pivotal in the future of the legal brawl.