.Ripple argues that the recent Supreme Court verdict in Bittner v. United States supports their fair notice defense against SECGov in the ongoing lawsuit against the company
The company asserted that the SEC failed to come up with clear guidance for the industry pertaining to the application of securities laws to digital assets, causing confusion and ambivalence among market participants.
Ripple Labs pointed out that the statutory provisions relevant to their case, such as the definition of"security" in 15 U.S.C. § 77b, provide no discussion specific to digital assets. They also argued that the SEC's prior guidance on the matter appeared to contradict their present litigating position.
The company stated that many experienced securities law practitioners and industry participants were unable to anticipate the SEC's current theory. Ripple Labs argues that, like in Bittner, the SEC's current theory poses a serious fair-notice problem. The case is still unfolding, and the Court's ruling will have momentous implications for the digital asset industry and the application of securities laws to digital assets.
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