(Reuters) – Ripple Labs Inc said in court filings on Friday that a recent decision by the US Supreme Court supports one of its key defenses in the SEC’s case over cryptocurrency XRP.
The San Francisco-based blockchain payments firm said Tuesday’s ruling, which limits the government’s ability to levy penalties on U.S. taxpayers who fail to report foreign bank accounts, emphasized that federal laws must provide a “fair warning” before the what they forbid.
Ripple asked U.S. District Judge Analisa Torres to review the decision when she rules in the SEC’s case accusing the company and its current and former CEOs of selling XRP created by Ripple’s founders in 2012 completed a $1.3 billion unregistered securities offering.
Ripple and its executives have denied the allegations, and the company has argued that XRP was traded and used as a digital currency.
The SEC has asked Torres to rule that Ripple has been properly advised that XRP is a security under US law. Ripple and executives have said that whether or not the law was vague should be taken to court.
Torres may decide that a court hearing is unnecessary to determine whether XRP was a security or narrow down the issues that come before a jury.
A ruling in the case could further define which digital assets qualify as securities in the US
The case is SEC v Ripple Labs Inc, US District Court, Southern District of New York, No. 20-CV-10832.
(This story has been corrected to fix a typo in paragraph 6.)
(Reporting by Jody Godoy in New York)
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.