The price of the cryptocurrency XRP is jumping after a federal court determined that Ripple may continue with one of its core arguments against the Securities and Exchange Commission in the United States.
According to court records, Judge Analisa Torres granted the SEC’s attempt to sever Ripple’s “Fair Notice Defense.”
The payments business located in San Francisco has long contended that the SEC did not provide proper notice to Ripple that the agency regarded XRP to be a security. XRP has increased 15% in the past 24 hours and is now trading at $0.84.
Ripple general counsel Stuart Alderoty said in an interview with Fox News that the ruling demonstrates the legitimacy of Ripple’s case.
“Today’s judgement reaffirms that there is considerable doubt about whether the SEC ever gave Ripple enough notice that its XRP payouts – which began in 2013 – would ever be illegal under securities laws. We will continue to vigorously defend this lawsuit in order to provide the industry with the certainty it needs to go ahead and grow.”
Additionally, Judge Torres denies Ripple CEO Brad Garlinghouse and cofounder Chris Larsen’s petition to dismiss SEC charges brought against them individually. Alderoty maintains his confidence in the SEC’s claims being dropped.
“While we would have liked that the lawsuits against Brad and Chris be dismissed at this point, the Court has determined that the SEC must prove its allegations. We are optimistic that the SEC’s accusations will eventually be rejected.”
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