- The US Securities and Exchange Commission filed a letter of supplemental authority to support its motion against Ripple.
- The financial regulator seeks to provide additional legal precedents boosting its likelihood of a win against the payment giant.
- SEC argues Ripple was given “fair notice,” XRP price wipes out recent gains in response to the filing.
The US financial regulator, Securities and Exchange Commission’s (SEC) lawsuit against Ripple has dragged on for over two years. Interestingly, in a new development, the US SEC has filed a letter to support its stance against Ripple, this could ensure the regulator’s win against the payment giant.
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SEC v. Ripple lawsuit upgrade: US financial regulator’s latest filing
In a new update in the SEC v. Ripple lawsuit, the regulator has filed a letter of supplemental authority to support its case against the cross-border remittance firm. James Filan, former federal prosecutor shared the filing in a recent tweet:
#XRPCommunity #SECGov v. #Ripple #XRP SEC files Letter of Supplemental Authority in further Support of its Motion for Summary Judgment. https://t.co/rdzW3Q6SIT
— James K. Filan (@FilanLaw) April 11, 2023
The filing strengthens the SEC’s argument that Ripple was given “fair notice” and addresses the defense of the payment giant. The US financial regulator’s additional legal precedent is a case against the Commonwealth Equity Services LLC where the judge granted the SEC’s motion for summary judgment and denied a cross-motion.
The agency believes this legal precedent supports the SEC’s case against Ripple.
The new legal precedent renders Ripple’s fair notice defense inapplicable
The legal precedent from 2019 when the SEC filed a case against Commonwealth Equity Services LLC and CEO John Rooney addresses their alleged violation of federal securities laws. The SEC landed a win in the case against the firm and considers this adequate to address Ripple’s argument of a “lack of a fair notice.”
XRP price nosedived in response to the update. XRP yielded nearly 4% losses for holders overnight. The recent development strengthens the SEC’s case against the remittance firm, fueling a bearish sentiment among XRP holders.
The altcoin wiped its gains from the past two weeks and is currently exchanging hands at $0.50.
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