Ripple Labs has filed a new supplemental authority notice in the ongoing lawsuit against the US Securities and Exchange Commission (SEC) over the classification of XRP as a security. The notice was filed with Judge Analisa Torres of the US District Court Southern District of New York and cited the decision in the Voyager Digital bankruptcy case, in which the SEC’s objections were rejected and the bankruptcy plan was approved. This is the latest development in Ripple’s fair notice defense and comes as the XRP community awaits the summary judgment in the lawsuit.
SEC’s objections to Ripple’s fair notice defense rejected
Recently, Judge Analisa Torres rejected the SEC’s motion to strike out Ripple’s fair notice defense, which prevented Ripple from arguing that it was warned of any wrongdoing. The regulator’s motion was rejected, and the SEC was not allowed to offer any guidance as to what the Debtors allegedly were supposed to prove in order to show that VGX was not a security.
The SEC’s objections to Ripple’s fair notice defense being struck out is a significant win for the company in the ongoing lawsuit. Ripple has argued that it was not given clear guidance on whether XRP was a security or not, and therefore cannot be held liable for any wrongdoing.
The SEC’s motion to strike out this defense was seen as an attempt to weaken Ripple’s case, but Judge Torres rejected the motion, stating that the SEC had not provided any guidance on what the Debtors were supposed to prove in order to show that VGX was not a security. This decision strengthens Ripple’s position and may make it more difficult for the SEC to win the lawsuit.
Judge Wiles’ ruling provides further support for Ripple’s fair notice defense
Referring to the ruling of Judge Michael Wiles in the Voyager Digital lawsuit, Ripple stated in its latest notice in opposition to the SEC’s motion for summary judgment that the ruling provides further support for Ripple’s fair notice defense. Judge Wiles rejected the SEC’s objections and allowed Binance US to proceed with its purchase of Voyager assets worth $1 billion.
The judge endorsed many of the arguments raised by Ripple in the ongoing lawsuit, stating that the SEC had not offered any guidance as to what the Debtors allegedly were supposed to prove in order to show that VGX was not a security.
Implications of the Voyager Digital ruling on the XRP lawsuit
The Voyager Digital ruling may have significant implications for the outcome of the XRP lawsuit. The ruling reinforces Ripple’s fair notice defense, which argues that the company was not given clear guidance on whether XRP was a security or not. This defense may be crucial in determining whether XRP should be classified as a security or not. The Voyager Digital ruling also highlights the SEC’s lack of clear guidance on what constitutes security. If the SEC cannot provide clear guidance, it may be difficult for companies to determine whether their assets are securities or not.
Conclusion
Ripple Labs has filed a new supplemental authority notice in the ongoing lawsuit against the SEC over the classification of XRP as a security. The notice cites the decision in the Voyager Digital bankruptcy case, in which the SEC’s objections were rejected and the bankruptcy plan was approved. This ruling reinforces Ripple’s fair notice defense and highlights the SEC’s lack of clear guidance on what constitutes security. The implications of the Voyager Digital ruling on the XRP lawsuit may be significant, and the outcome of the lawsuit may have a far-reaching impact on the crypto industry as a whole.
