Ripple scored a big win yesterday. US District Judge Analisa Torres rejected the Securities and Exchange Commission’s request to remove Ripple’s fair notification defense. After the decision was made, the price of XRP immediately rose by more than 10%.
Ripple achieves a very important victory
The Securities and Exchange Commission (SEC) filed a request last April to drop Ripple’s fair notification defense. The fair notice defense will compel the Securities and Exchange Commission to release information about the FSA’s communications since 2013. For clarity, we explain below what the fair notice defense entails.
The fair notice defense focuses on whether Ripple has received a fair notice from the SEC on whether the sale of XRP tokens is an illegal sale of securities(s). According to Ripple, the SEC has been aware of the selling plan for a long time and has never stopped Ripple. So they never received fair notice from the SEC that what they were doing was illegal. Years and years later, the SEC suddenly filed a lawsuit.
The SEC wanted to block this defense, but the judge has now put an end to it. This could be very positive for Ripple.
If you weren’t paying attention, you should be now. Huge win for Ripple today! https://t.co/dMeUQuIPHM
– Brad Garlinghouse (@bgarlinghouse) March 11, 2022
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Overseas Securities and Exchange Commission to postpone the lawsuit
In this case, the court was also satisfied that the SEC was on a mission to implement delay tactics by increasing the time, cost and complexity before the case reached full trial, hence the SEC’s decision to drop the lawsuit.
“The court will not conclude at this early stage in the case that Ripple’s defense is invalid. Accordingly, the SEC’s proposal to stop the affirmative defense of Ripple’s fair notice is rejected.”
“Today’s decision makes clear that there is a serious question as to whether the SEC has given Ripple fair notice that the distribution of XRP – since 2013 – will be prohibited under the Securities Act,” said Ripple’s general counsel.
XRP price increased by 15 percent
Immediately after the good news from the lawsuit, the price of XRP started to rise. The price of Ripple rose more than 15 percent in a few hours. It reached a high of 0.84 USD around 3 AM. Since then, the price has fallen slightly, making 1 XRP token worth $0.79 at the time of writing. That’s still 7 percent higher than it was a day ago.