The lawsuit between Ripple and the SEC has taken a new turn. A couple of days ago, the SEC filed a Letter of Supplemental Authority to support its notion of summary judgment.
Regarding Commonwealth Equity Services’ support for the SEC, the US regulatory authority cited the District of Massachusetts court. In this case, the jury determined that the defendant had violated the 1940 Advisers Act’s provisions pertaining to negligence. In addition, the court rejected the processing of an affirmative defense for lack of proper notice.
It did not take the Ripple defendants long to strike back, as they recently released their statements as well. The legal team for XRP has asserted that the Commonwealth Equity case supports the company’s stance. According to them, this case demonstrates the significance of fair notice in complex legal proceedings.
As per the letter filed by the SEC, the regulatory framework has claimed to provide sufficient and fair notice based on the precedent set by the Supreme Court. However, the defense team at Ripple has maintained its stance against the SEC’s reliance on the Howey case.
In the Commonwealth Equity trial, the blockchain group has brought up the fact that a fair notice defense could not be tried at summary judgment. Even then, the SEC had known about the company’s methods for almost 20 years before finally deciding to do something about it.
It supports Ripple’s claim that it did not get sufficient notice from the U.S. Securities and Exchange Commission. The legal struggle between Ripple and the SEC began in 2020 and has been ongoing and contentious for several years.
Given the severity of the allegations, the judgment in this case can have significant repercussions across the crypto and regulatory markets. That is why the entire crypto community has been closely following the case until now.