The latest development in the SEC and Ripple lawsuit that has been in the court for longer than a year now seems to be moving rapidly in favor of XRP investors. Recently SEC filed a fair notice motion that claimed that the Ripple lab was provided with fair notice in response to a discovery order about the illegal nature of XRP token as illegal security.
However, Judge Analisa Torres has recently rejected the motion giving another boost to the defendants in the case. The fair notice response was submitted by SEC in April. The presiding judge rejected the motion from SEC on account of insufficient legal evidence to prove the motion. Meanwhile, Ripple has also filed a countermotion to this end.
Defense attorneys filed a counter-motion to deal with the fair notice motion by SEC. The defendants were seeking to establish that SEC officials have complete knowledge about the processes that were taking place in Ripple that they claimed to be uncertain or unclear in April.
Ripple is working on its discovery order to produce some degree of substantial evidence in the case. On the other hand, the prosecution has already submitted a plea in the court to strike the request of Ripple on account of insufficient defense technicality. Furthermore, the state agency also added a burden of regulations to bar the court from entertaining the appeal of Ripple Labs.
SEC Fails to Produce Necessary Legal Backup
The defense lawyers at Ripple are working on disregarding every legal point that SEC based the case on. Recently, the court ruling suggested that SEC lawyers were unable to produce enough legal backup to discredit the Fair notice plea from the Ripple Labs. Furthermore, SEC also could not disprove the allegations of undue prejudice from the SEC.
The court ruling clearly stated that it is not dismissing Ripple Labs’ defense stance on the Fair notice matter. The court also denied SEC’s motion to strike rebuttal of the defense from the record. Ripple’s General Counsel recently claimed that with the latest development it has become unclear whether SEC ever provided Ripple Labs with a fair notice about the illegal nature of the XRP token since 2013.