Ripple and XRP Destroy SEC in Retaliation to Summary Judgment

• In a response to the SEC's Letter of Supplemental Authority, Ripple argues that the Commonwealth case the SEC cited is insufficient justification for rejecting Ripple's fair notice position.
• Ripple asserts that the two decisions are not comparable and points to the Upton case as a definitive precedent that supported the defendant's reasonable notice defense.
   

In a response to the Letter of Supplemental Authority from the U.S. Securities and Exchange Commission (SEC), Ripple has challenged the SEC's claims. In its request for summary judgment against Commonwealth Equity Services LLC, the SEC cited a Massachusetts District Court decision. The SEC asserted that the ruling validates the Howey test's exclusion of Ripple from the requirement for a separate fair notice.

In its response, Ripple outlined the reasons why the Commonwealth decision does not give the SEC "additional authority" to disregard the fair notice position. The defense team for Ripple notes that, in contrast to Commonwealth, Ripple has provided a substantial amount of evidence from SEC filings and correspondence with third parties, demonstrating that reasonable market participants did not view XRP as a "investment contract."

Furthermore, the Investment Advisers Act's applicability in the Commonwealth case was indisputable, whereas the Securities Act's relevance in Ripple's case is still debatable. The SEC's reliance on the Commonwealth case, according to Ripple, is irrelevant and the two cases are not similar. In its place, Ripple cites the Upton case as controlling precedent, which supported the defendant's reasonable notice defense.

Ripple's prompt answer will probably avoid any delays in the summary decision. The price of XRP was $0.5376 as of the report, up 6.2% over the previous day.