Ripple, the blockchain-based payments firm, has filed a new memorandum in support of its motion to dismiss the lawsuit brought against it by the US Securities and Exchange Commission (SEC). This latest move is set to bolster Ripple’s case as it fights to have the case dismissed. Furthermore, sources suggest that a ruling over the SEC’s case against Ripple could be made by the end of April. Nonetheless, Ripple has maintained that the SEC’s allegations that it sold $1.3 billion worth of unregistered securities are baseless. Therefore, Ripple’s new filing further strengthens its argument in the ongoing lawsuit against the cryptocurrency company.
Ripple Labs has strengthened its fair notice defense in its legal battle against the U.S. Securities and Exchange Commission (SEC) by filing a Letter of Supplemental Authority. This latest development in the case cites Judge Michael Wiles’ ruling in the Voyager bankruptcy case, in which he rejected the SEC’s claim in strong terms. Ripple’s legal team notes that the ruling further supports Ripple’s arguments that cryptocurrency market participants “operate in a regulatory environment that can be described as highly uncertain at best.”
The SEC’s vague objections were deemed insufficient by Judge Wiles, and Ripple argues that the agency has generally provided only “limited guidance” to market participants. In addition, regulators are unable to agree as to whether cryptocurrencies are commodities that may be subject to regulation by the CFTC, securities subject to securities laws or neither.
An XRP community attorney suggests that Judge Torres is expected to issue a ruling in Ripple vs. the SEC no later than the end of April. XRP’s current price is at $0.3808, continuing a sideways trend that began in early November 2022.
These developments certainly carry weight in the ongoing case but make for interesting watchful speculation.