The price of XRP has risen by nearly 5.25% on the day as Ripple scores a ”huge win” against SEC in the ongoing lawsuit. This bothers around the optimism sparked by the latest positive developments in the Ripple-SEC lawsuit.
In the latest developments, Judge Analisa Torres has denied SEC’s motion to strike Ripple’s make-it-or-break-it “fair notice” defense. Ripple CEO, Brad Garlinghouse has taken to Twitter to describe the ruling as a “huge win” for the defendants, saying ”If you weren’t paying attention then, you should be now. Huge win for Ripple today!”
He continued ”And while we would have preferred the cases against Chris and me to end now, the SEC must now prove its claims. We are confident that ultimately all of them will be dismissed”.
Early on in the case, the two individual defendants (Brad Garlinghouse and Ripple Larsen) filed a motion to dismiss the cases against them as individuals on a variety of grounds. The judge has denied that motion.
Stuart Alderoty, Ripple’s general counsel, has already commented on the decision to shoot down the SEC’s motion to strike, claiming that there’s a “serious question” whether the agency provided the company with fair notice. Ripple has also moved to strike an “impermissible” rebuttal report written by securities and finance expert Dr. Albert Metz who claimed that “certain news and public statements” did influence the XRP token’s performance.
Another major ruling, the anticipated verdict by Magistrate Sarah Netburn on the SEC’s motion for reconsideration, dubbed “the largest decision” in the case by Cryptolaw founder, John Deaton, is still being awaited by Ripple and the XRP community. The XRP holders’ attorney says of this, ”I also believe Judge Netburn’s rulings on the 63 emails and the Estabrook notes (might) come down any day.” XRP holders believe the release of these notes might help bolster Ripple individual defendants’ testimony on the lack of regulatory clarity.
The ”Estabrook notes” were taken during a 2018 meeting between Elad Roisman and Brad Garlinghouse, which came into the limelight in January 2022, when Estabrook cleaned out his desk as he prepared to leave his position at the SEC.
Ripple had filed a motion in February to compel the SEC to turn over the Estabrook notes when the agency claimed the deliberative process privilege (DPP). Ripple, however, argued that the notes were not privileged and should be disclosed.
The company further stated that contemporaneous meeting recordings provided to the SEC demonstrate that the Ripple boss had departed the meeting, initiating the belief that the SEC had recognized the legal “purgatory” posed by regulatory ambiguity.
Ripple had scored an earlier win when the two 2012 legal memos that contained the description of the advice Ripple received were made public.
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