The legal battle between Ripple and the US Securities and Exchange Commission (SEC) continues, and former SEC official John Reed Stark has issued a warning to the XRP Army about a recent development in the case.
The SEC wrote a letter to the court, citing a decision made in the SEC’s case against Commonwealth Equity Services over alleged disclosure violations. Stark explains that the letter reminds the court of Ripple’s weak “fair notice” defense and emphasizes that ignorance of the law is not an excuse.
The SEC claims that the Commonwealth decision supports its position that Ripple received fair notice of what constitutes a security and must be registered with the SEC per the Howey Test.
Stark also notes that the SEC has taken unprecedented measures to make its views known regarding digital assets and has used multiple channels to share concerns about crypto and digital asset products and services.
Stark believes that claiming a lack of clarity and fair notice amid such a concerted SEC effort for crypto-related transparency seems “disingenuous” and “ill-advised.”
The outcome of the Ripple case could have a significant impact on the cryptocurrency industry, as it may establish a precedent for how digital assets are classified and regulated in the United States.
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