The U.S. Securities and Exchange Commission (SEC) has issued a letter calling Ripple’s defenses against its allegations “improper.”
In a letter (filed on March 9) to Honorable Judge Analisa Torres of the U.S. District Judge Southern District of New York, the SEC tries to strike Ripple’s “fair notice” defenses and other motions to dismiss the lawsuit.
The SEC previously filed a suit against the Californian FinTech firm, alleging that Ripple had acted illegally in distributing XRP, which it deems unregistered security, to investors. In this letter, the SEC says:
“The SEC alleges that Ripple violated Section 5 of the Securities Act of 1933 for failing to register certain offers and sales of XRP. To adjudicate this strict-liability claim, the Court must decide a single issue—whether Ripple offered and sold XRP as “investment contracts” as the Supreme Court defined the term in SEC v. W.J. Howey & Co., 328 U.S. 293 (1946).“