Ripple and the Securities and Exchange Commission (SEC) are still weighing their options with several motions.
This appears to be changing for Ripple. The SEC has filed a request citing extra power to invalidate Ripple’s fair notice defense.
Furthermore, the move is seen by market participants as indicating that the SEC is terrified of Ripple winning the litigation.
SEC’s Anxiety Towards the Case
Ripple has made it harder for the Securities and Exchange Commission to brand its XRP coin as security.
A recent SEC filing supports a motion to dismiss Ripple’s fair notice argument. The notification references the case ‘SEC versus Keener’.
The defendant had improperly registered as a securities dealer under the Securities Exchange Act of 1934, which nullified Keener’s fair notice argument. A case like Ripple’s used to argue that the law was clear on what Ripple should do before filing the lawsuit.
Ripple has filed an objection in response to the notification. The SEC was violating due process by injecting out-of-circuit verdicts into the ongoing case, according to Ripple’s protest.
Additionally, the SEC demanded that the company’s fair notice defense dismiss without “considering factual record.”
So, the back-and-forth dialogue sparks conjecture that the SEC is concerned about losing control of the case.
According to John Deaton, an attorney representing over 63,000 XRP holders in the litigation, the SEC’s warning shows that the securities regulator fears Ripple winning the fair notice claim.
Ripple’s Victory Threatens SEC’s Crypto Regulation Aspirations
The crypto community agrees that the lawsuit puts the SEC and the crypto industry at risk. Observers believe that if the SEC succeeds, it will be able to pursue other cryptocurrencies. However, if Ripple succeeds, the crypto business will be more secure.
As things stand, the case appears to head in Ripple’s favor. Thus, this is especially true given the commission’s decision in the Deliberative Process Privilege case, also in Ripple’s favor. More investors anticipate entering the market if Ripple succeeds.