The price of XRP has begun moving on its own as the legal battle between payment company Ripple, and two of its executive, versus the U.S. Securities and Exchange Commission (SEC) sees a new development. According to a document file with a court in the Southern District of New York, the District Judge will allow the company to use a “fair notice defense”.
Related Reading | Ripple Could Beat SEC? Report Suggests Regulator’s Staff Thinks So
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) March 11, 2022
In other words, Ripple will be able to argue in its favor that the regulator failed to inform it that XRP and his public sails could potentially violate U.S. law. As previously reported by Bitcoinist, the payment company claims it asked the SEC about its token offering.
However, the company claims the fails to provide regulatory clarity regarding XRP. In support of Ripple’s defense, there are records of two separate reports from legal firm Perkins Coie on the legality of the company’s token offering.
Date as far as 2021, the reports attempt to demonstrate that Ripple seeks legal consultation before the sales. The report also could be used to demonstrate Ripple even changed its business model to remain compliant with U.S. Laws. Stuart Alderoy, General Counselor at Ripple, stated the following regarding today’s court decision:
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. Good to see the Judge rejecting the SEC’s attempt to prevent Ripple from pursuing its fair notice defense. It’s even more imperative that the sun sets on the SEC’s “regulation by enforcement” approach.
XRP Decouples From General Market Sentiment
The XRP community has celebrated the recent court ruling as they consider it will provide an advantage versus the regulator. Commenting on this development, legal expert Jeremy Hogan commented the following:
I know you’ve been working on the pending rulings in the Ripple v. SEC case this week. On behalf of myself and certain other interested parties, we’d really like to get those rulings TODAY if possible (…). BOOM! (And I don’t use that term lightly) The SEC’s Motion to Strike the Fair Notice Defense is DENIED. This is the one I’ve been waiting for. NOW the SEC has something to lose.
As a result of these recent developments, XRP trades on an uptrend in lower timeframes. The cryptocurrency has quickly re-entered the top 5 by market cap after a long period of absence. Although a significant win, according to the above-mentioned expert, the legal battle continues.
As of press time, XRP trades at $0.80 with a 9.1% profit in the last 24 hours. The cryptocurrency used to occupy the third spot in terms of market cap, only surpassed by BTC and ETH. Remains to be seen if it will reclaim its spot.
Related Reading | SEC Will Lose Lawsuit Against Ripple, Former SEC Official Predicts