The Court accepted “Fair Notice Defense” made by Ripple argument and ruled in its favour.
The XRP vs SEC lawsuit has taken a new turn.
On Friday, March 11, a federal judge ruled that Ripple can proceed with one of its central arguments against the U.S. Securities and Exchange Commission (SEC).
Court documents reveal that Judge Analisa Torres of the United States District Court for the Southern District of New York has denied the SEC’s motion to strike Ripple from using a “Fair Notice Defense.”
Ripple has for long contended that the SEC did not give it adequate notice that the agency considered XRP to be a security.
This positive news pushed up the price of XRP, the native token of Ripple. It opened at 0.7351 USDT on Binance and closed at 0.8029 USDT, registering an increase of over 9%.
However, Judge Torres denied Ripple CEO Brad Garlinghouse and cofounder Chris Larsen’s motion to dismiss the SEC’s individual charges against them.
The SEC has also “plausibly shown” that the individual defendants made domestic offers of the token.
The Court believes that the SEC has plausibly alleged that Ripple CEO Brad Garlinghouse and company co-founder Chris Larsen knew, or recklessly disregarded, the facts that allegedly made Ripple’s XRP digital coin amount to the unregistered sale of securities. So, the court rejected the claim stating that XRP’s sales were predominately foreign.
This case will continue against Ripple’s top executives.
Ripple is one of the oldest cryptocurrency enterprises. Other than cryptocurrency, it also provides payments and banking solutions. So, a case dropped against an old player is a positive sign for the industry.
A couple of days ago President Joe Biden signed an Executive Order on Ensuring Responsible Innovation in Crypto. Both these developments have come in a row. These events indicate a fairly certain regulatory framework for the digital asset industry in future.
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