Ripple Labs’ letters over supplemental authority in the Bittner and Voyager cases have been met with a response from the United States securities and exchange commission (SEC) in a recent filing on March 23.
Ripple presented the judgment as a supporting argument for its fair notice defense. The company pointed to the writing of bankruptcy judge Michael Wiles on “long-standing uncertainty” for the sector, which even regulators differ on.
The supreme court’s decision in Bittner v. United States, handed down on Feb. 28, was cited in the supplementary authority brief Ripple submitted concerning the Bittner case.
The Supreme Court reaffirmed that “fair notice should be provided to the world in terms comprehensible by the general public,” which the SEC most definitely did not accomplish concerning XRP, according to the firm’s argument.
SEC’s argument against Ripple
In its reply brief from yesterday, the SEC argues that neither ruling supports ripple’s fair notice position and offers no grounds for dismissing the SEC’s petition for summary judgment. This argument was made since the same court issued both decisions.
The SEC’s statement states, “neither decision even contains a fair notice defense.”
In addition, the regulator asserts that it has consistently offered advice to the effect that crypto offers violate securities regulations “where they entail the offer and sale of an investment contract.”
According to the SEC, Voyager does not aid the defendants either. It includes a bankruptcy plan for the possible sale of a crypto asset conglomerate to another business. Voyager does not help the defendants.
The defendants dishonestly mischaracterized the statements made by the Voyager bankruptcy court. They plucked choice words and expressions out of context in a misleading bid to strengthen their unfruitful fair notice defense.
Defendants misinterpret the statements made by the Voyager bankruptcy court to strengthen their futile fair notice defense, according to the watchdog.
What should we expect in the lawsuit?
The remarks are being contested among the XRP legal community, and it is disputed that they will significantly influence the case, which is expected to come to a verdict this year, 2023.
According to attorney John Deaton, it does make some fair arguments about the Bittner case. However, he stated the effort to claim that the Voyager judge did not declare that the cryptocurrency industry confronts apparent ambiguity is laughable.
However, Australian attorney Bill Morgan said that the SEC’s response letter ends the conjecture over why the SEC did not answer to Ripple’s letter on the Bittner case.
Morgan highlighted that the SEC’s letter was sent in response to Ripple’s letter.