The latest memorandum from the XRP company seeks to challenge the SEC’s previous motion.
Ripple has filed a new legal memo in response to the SEC’s previous legal motions as part of ongoing litigation. The SEC allegedly misquoted essential elements of Ripple’s security, according to this memo.
The Ripple Lawsuit is still going on
The SEC filed a lawsuit against Ripple in December, arguing that its XRP sales are an unregistered securities offering.
Ripple tried to defend itself as the case proceeded, claiming a lack of due process and fair notice from the SEC. Ripple also sought information from the Securities and Exchange Commission (SEC).
The SEC filed a motion to dismiss in April, claiming that Ripple’s defense and demands would subject it to unreasonable obligations.
Ripple has now accused the SEC of omitting crucial parts of discussions in its motion to dismiss its allegations in a new memorandum.
The SEC quoted Ripple as saying that its request for correspondence was extremely relevant…to [its] proper notice protection. On the other hand, Ripple claims that its entire argument suggests that the request was valid whether or not its defense was successful.
Ripple reiterated the statement in today’s memorandum, which reads:
“The discovery is relevant “both” to the fair notice defense ‘and the same … applies to whether the individual defendants were reckless or had knowledge that XRP would be found to be a security.
Secondly, Ripple claims that the SEC misquoted a statement from the case’s judge. In its previous motion, the SEC claimed that the case’s judge said that discovery of internal communications “could conceivably be relevant to Ripple’s fair notice defense.”
On the other hand, Ripple claims that this is incorrect; rather, the judge declared that the SEC’s charges open the door to such a discovery.
Is Ripple’s Argument Valid?
It’s unclear if Ripple’s claims will be successful. To the best of the SEC’s knowledge, no federal court has ever admitted a defendant’s claim of lack of notice.
The SEC is most likely to continue to oppose Ripple’s claims in the future, given the case’s previous developments.
It is still unknown when the matter will be resolved. Even though it could be determined by the end of the year, each party’s opposition to the other means the case could go on until 2023.