The US Securities and Exchange Commission’s efforts to strike Ripple’s “lack of due process and fair notice” defense should be denied, according to a new court filing by Ripple. The communications of Ripple’s XRP are over to the US Securities and Exchange Commission, according to a court ruling.
The US Securities and Exchange Commission has been unable to get any legal communications Ripple Labs sought or received in order to determine if XRP sales were subject to federal securities law. The SEC’s decision to invalidate Ripple’s affirmative defense does not meet the “demanding” legal standard, according to defense attorneys for the San Francisco-based payments technology company.
Ripple’s attorney-client privilege
SEC and Ripple additionally attempted to get data on Ripple and XRP exchanges outside the USA through the SEC’s Memoranda of Understanding (MOU). According to a document issued on May 30, Judge Sarah Netburn of the District Court for the Southern District of New York dismissed a motion filed earlier this month confirming Ripple’s attorney-client privilege. Ripple’s legal team is also working to strengthen their fair notice defense.
The Securities and Exchange Commission (SEC) is seeking an order requiring Ripple Labs (“Ripple”) to produce all communications containing, transmitting, or discussing any legal advice Ripple sought or received regarding whether or not its XRP offers and sales were or would be subject to federal securities laws.
“Privilege was waived by bringing into question Ripple’s good-faith view that it was complying with the law through Ripple’s fair notice defense,” the SEC stated in the memo. Ripple had no reasonable notice from the SEC about whether XRP was a permissible offering, according to the fair notice defense.
The SEC claims that Ripple is aware of XRP’s legal standing because of more than 70 comparable enforcement actions against other crypto businesses. Ripple’s case is based on Upton v. SEC, a case in which a federal court supported a fair notice defense despite the SEC’s argument that it was “an outlier case resulting from extremely distinct circumstances.”
XRP is currently the 6th largest cryptocurrency. Coin’s value at the time of writing is $1.01 with the change of 11.36%. In the last 24 hours its trading volume is $6,060,875,795 along with market cap of $46,631,585,959.