As the market expects a favorable court ruling, XRP is buoyant and is on the move. On Friday, Ripple’s XRP surged by 9.02% and reflected a broader cryptocurrency upsurge. The latest Ripple v SEC case updates have caused the upward movement and delivered XRP support reports fxempire.com. Unfortunately, the rest of the crypto majors followed the fate of the U.S equity markets into the red.
SEC Had Not Informed Ripple Lab Of A Possible Violation Of SEC Laws
On Friday, it became evident after the sitting judge hearing the SEC v Ripple case Ripple to use a fair notice defense. The court documents revealed it. This decision by the court is crucial for Ripple’s defense since Ripple alleged that the SEC had not informed Ripple Lab of a possible violation of SEC laws. The latest court ruling closely followed a previous judgment in favor of Ripple Lab. The court had in February ruled in favor of unsealing two legal opinions.
General Counsel for Ripple Lab, Stuart Alderoty, took to Twitter in response to the court ruling, saying, “Today’s order makes it clear there’s a serious question whether the SEC ever provided Ripple with fair notice that its distributions of XRP – since 2013 – would ever be prohibited under the securities law”.
The latest court order makes it very clear that the SEC erred by not informing Ripple that its distribution and trade of XRP since 2013 could come under a scanner and would ever be prohibited under the securities law reports fxempire.com.
Brad Garlinghouse tweeted, “If you weren’t paying attention then, you should now. Huge win for Ripple today!”
The latest court ruling also is in line with Ripple’s legal contention to remain within the purview of U.S laws and, more importantly, to address any concerns vis-à-vis the classification of digital assets.
February Court Rulings in Favor of Ripple Lab
The first of the two rulings was related to NewCoin, and the second was Ripple Network/OpenCoin.
In the first opinion, dated 8th February 2012, Perkins Coie LLC concluded that: If coins are bought via “prepaid access,” it comes under the purview of the Bank Secrecy Act, which regulates providers and sellers of prepaid access.
The second opinion was made concerning Coins sold to investors being considered securities: “If sold to Investors who provide Founders with the capital necessary to launch and operate NewCoin, Coins will likely be considered securities and subject to regulation under federal securities laws.”