Ripple Labs Inc. has fought back in anticipation of the Securities and Exchange Commission (SEC) motion to strike its major defense. According to the company, the SEC’s motion to strike its “fair notice” defense is meritless. In a letter to the federal judge, the Brad Garlinghouse led company is asking the court to reject the authorities motion.
On Dec 22, the SEC filed a lawsuit against the San Francisco-based company over the sales of unregistered security. The crypto company has since been embroiled in multiple law cases; last week, it reached a settlement with YouTube over an XRP video scam.
About two weeks ago, the firm filed a motion that the financial regulator did not give a “fair notice” about its XRP violations. The company provided further details to buttress its defense saying that many “market participants” who had traded its native crypto asset believed it wasn’t an investment contract.
Ripple Maintains its Stand on XRP
About three years ago, a former SEC executive, William Hinman commented that Bitcoin and Ether were not designed to be securities. Therefore, in a recent motion, Ripple demanded documents related to Bitcoin and Ethereum since they are considered very similar to XRP. However, the watchdog has responded to Ripple’s motion, claiming it is irrelevant to the case.
This lawsuit between the two bodies has been ongoing for the last 4 months without any hope of respite on the horizon. Just yesterday, supporters of XRP volunteered to join in the case against the SEC but the motion was rejected by the court.