Ripple is arguing that the recent SEC decision on and Bitfinex and Tether is subject to additional due process considerations, as well as the requirement of fair notice. The document noted, “That such an important pronouncement from a federal agency would be published in the Federal Register for public discussion — or that a federal administrative law judge would be appointed to hear cross-applications in a contested proceeding — defies all logic. This process does not provide Ripple with fair notice or any opportunity for meaningful judicial review.” Ripple challenged the motion, arguing in part that its assertions in its white paper were not determinative of whether XRP tokens are securities. The company added that the SEC had failed to make a sufficient case for why it wasn’t entitled to fair notice, according to The Block. The part of the memorandumm read:
“The SEC omits key parts of the discussions it cites. First, the SEC provides as an example Defendants’ requests for discovery of certain internal communications at the SEC, and quotes Ripple’s counsel stating that this discovery ‘has a great relevance… to our fair notice defense.’
“Second, the SEC represents that Magistrate Judge Netburn ‘reasoned that [the discovery] could conceivably apply to Ripple’s fair notice defense.’ The SEC misstated what Judge Netburn said. Judge Netburn stated that the SEC’s own decision to charge the individuals with abetting — a claim that requires proof of scienter–opened the door to this discovery.”
The misquoting of judge could especially play against the SEC within the court given they need made several amendments within the lawsuit even before it made it to court.
A Second Chance: SEC Issues New Rules Regarding ICOs
XRP community members, in recent days the most influential lawyer for digital assets John E. Deaton clarified SEC is not a saint and how corrupt the system has become. The latest actions and words of SEC officials prove he is one hundred percent honest while trying to keep XRP as decentralized as possible. He said,
Doesn’t take an expert to see that plenty is very wrong, very corrupt and very outrageous about the SEC’s lawsuit against Ripple
The SEC is starting proceedings to cease the activities of two companies that offered investments in securities issued by the companies without registering the offers and sales of those securities with the SEC, which is required under the federal securities laws. Both of these cases involve what are known as ICOs — initial coin offerings using distributed ledger or blockchain technology. Such technology-based interest has raised significant concerns among regulators as to whether there have been illegal sales of securities, including unregistered offerings made by people who do not qualify to sell them.
