Whether SEC Ever Provided Ripple with Fair Notice on XRP Distributions

On March 11, 2022 Stuart Alderoty expressed:  Today’s order makes it clear there’s a serious question whether the SEC ever provided Ripple with fair notice that its distributions of XRP – since 2013 – would ever be prohibited under the securities law.

Good to see the Judge rejecting the SEC’s attempt to prevent Ripple from pursuing its fair notice defense. It’s even more imperative that the sun sets on the SEC’s “regulation by enforcement” approach.

Community Reaction:  Stuart in any other first world jurisdiction there is a strong argument that on conclusion of the trial costs orders should be made personally against the SEC lawyers and commissioners.

What about the investors? Do you remember, the investors they are there to protect?

So, if I am understanding correctly, they could still deny the Fair Notice defense, but the SEC’s motion to get it tossed was denied, basically the judge saying there is reason to listen to their reasoning on the fair notice, not just toss it.

Yes, it’s not guaranteed that Ripple wins the fair notice, but it’s guaranteed that the SEC can’t afford to lose on that.  Therefore, it’s more likely they try to make a deal or their cash register risks being shut off.

If they had been willing to settle, this would have been over two weeks after it started.  Very obvious they are not in here for a settlement.

SEC didn’t say anything to Ripple over XRP in 2013 because the Ethereum foundation had not been created yet

Trade express:  Why XRP is not a security? #XRP is not a security because, like most #cryptocurrencies, it does not meet the definition of the term in question. First, on the most literal level, the category of asset it belongs to is not included in the definition.

Based on existing U.S. law, currency (as in the money itself) are not securities. “Cash equivalents” like Treasuries and GICs are. But physical cash itself isn’t. Cryptocurrency is primarily used to buy and sell things, that fit the definition of cash, not the securities!

Second, there is one asset class that it may belong to (money), and that asset is not a security.

Third and finally, the SEC have been caught behind closed doors saying that cryptocurrencies aren’t securities. Unless XRP is qualitatively different from other cryptocurrencies, it’s not a security, based on the SEC’s past claims.

I wish I had a dollar for every time someone makes XRP price predictions on Twitter! Seriously, everybody making wild guesses.