Winning the Fair Notice could save Ripple and the cryptocurrency industry from SEC
The case between Ripple and the SEC is approaching its most significant development to date. First, the Fair Notice defense argues that there is no reasonable evidence from the SEC as to whether the sale of XRP constitutes an illegal securities offering.
Winning the Fair Notice could save Ripple and the cryptocurrency industry a conspicuous goal
According to the SEC, Ripple could not even issue a defense on the Fair Notice, as was the case with Kik Interactive a few years ago.
The SEC states:
“Indeed, Judge Hellerstein recently evaluated an Upton defense based on facts materially indistinguishable from those alleged by Ripple, and found the defense to fail as a matter of law.”
That’s why attorney Jeremy Hogan disagrees:
“Lucky for us, I have read all of the Kik Interactive pleadings and this is just not true. In fact, I just pulled it up on Courtlistener to show you.”
He said in a Youtube video:
“Right there at entry #26, you can see that in the KIK Interactive case the SEC also filed a Motion to Strike the Defense, called a Motion for Judgement on the Pleadings, here. And if you go down to entry 29 you can see that the Judge denied the motion without prejudice.”
Although the judge ultimately ruled against Kik, it was not a plea but a summary judgment later.
“And that’s where I also think Ripple’s Fair Notice defense will be decided. Prediction: Motion to Strike Denied.”
So, have you ever wondered what would happen if Ripple won the Fair Notice defense?
Attorney Jeremy Hogan said:
“It becomes the persuasive authority for any crypto company the SEC sues from this point forward. If the Fair Notice defense survives and Ripple wins, the SEC is going to have an uphill battle winning any other lawsuit they bring.”
Then he added:
“But it’s even bigger than that. . . Even if Ripple loses the Fair Notice defense, they can appeal the ruling. And if an appellate court determines that Judge Torres was wrong and Ripple did not have Fair Notice, then the SEC is now really in trouble because that ruling is binding on every crypto lawsuit that comes along. For the most part, the SEC will not be able to bring any more crypto lawsuits if that happens and, the SEC is funded by the fines and such from these lawsuits so…read between the lines.”
The Fair Notice defense is the one the SEC is most worried about because that could potentially save the industry from the regulator. It’s the defense that would lead to the case settling/resolving before a hearing on Summary Judgment.
Although XRP holders do not have a stake in Ripple Labs, the cryptocurrency’s volatile price has led its owners to comply with the SEC v. Ripple intensely. Much has been said in the past and the outcome of the case is anyone’s guess for the time being. However, Ripple Labs is most likely analyzing its options for any settlement or court decision.
So to answer the above question is really difficult. Because, there are many ways that Ripple can do, such as moving the company headquarters abroad. This information was revealed in October 2020 by co-founder Chris Larsen. In early April 2021, CEO Brad Garlinghouse told CNN that the company is willing to march without XRP if it loses the legal battle against the US regulator.
Moving to a friendlier jurisdiction is more likely to serve the interests of XRP holders in such a scenario.
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