The ongoing legal tussle between Ripple and the U.S. Securities and Exchange Commission keeps on raging as both parties argue in favor of their cases in court following the heavy penalty slammed on Ripple by the SEC.
As the legal battle rages on, the price of Ripple’s native token, XRP, has begun to move in an upward trend in the market as the payment company awaits the court’s final decision in its case against the SEC after a new development arises.
As per the document filed with a court in New York by Ripple, the Judge has given the blockchain company the green light to use what is known as the “fair notice defense” to argue its case.
That is to say, Ripple would be allowed to argue and convince the Judge that the SEC failed to inform the company that XRP and the general operation of some accounts could potentially fall foul of the extant laws of the United States. Ripple has previously asked the SEC about its token offering from available reports before the case arises.
According to Ripple, the regulatory body fails to provide official clarity regarding the public sale of the XRP token. In its defense, it points to two separate documents in a legal firm about the legality of its token offering.
What Does the Legal Document Entail?
The legal firm, Perkins Cole, argued that the documents dated 2021 show that Ripple, before the public sale of its token, sought legal consultation. Ripple would also use the report to demonstrate in court that Ripple changed its original business strategy in its attempt to remain compliant with U.S. law.
According to the General Counselor at Ripple, Stuart Alderoy, the court’s decision clarifies that the SEC has a question to answer on whether or not it provided Ripple with a fair notice considering all things done before the turn of events. Alderoy added that it is also refreshing to see the Judge reject the regulators’ attempt to prevent Ripple from pursuing a fair notice defense.
Going by the turn of events, there is apparent official negligence on the part of the SEC toward the activities of Ripple, as the regulatory agency failed to provide fair notice to Ripple before the public sale of its XRP token accounts.
XRP Frees Self From Market Speculation
The recent legal decision in favor of Ripple to argue its case has been welcomed by the XRP community as they are convinced that it will provide an added advantage against the regulator.
A legal analyst, Jeremy Hogan, commented on the new development by saying that many in the industry were expecting the ruling to be over today. Still, it appears that Ripple got the upper hand, and the SEC has something to think about next time.
As a result of the legal tussle, XRP has declined in value but suddenly jumped into the top 5 by market capitalization after the recent court ruling.