Analisa Torres, the United States District Judge, has denied the application letter from the U.S. Securities and Exchange Commission (SEC) to strike out Ripple’s fourth affirmative defense, a move many termed as delay tactics from the regulator.
In the letter, the SEC demanded the court to exercise its discretion in considering its proposed sur-sur-reply in order to “present to the Court highly relevant recent authority that directly refutes the arguments Ripple makes in its Sur-Reply and respond to arguments Ripple makes for the first time in its Sur-Reply.”
Court Denies SEC’s Demand
As described in the letter to Judge Torres, Ripple’s Sur-Reply argues that the court cannot consider the SEC’s public enforcement actions in the crypto ecosystem, which were filed before this lawsuit.
According to the letter, on seventh February 2022, a New Hampshire district court granted the SEC’s motion for judgment on the pleadings and struck an affirmative defense similar to that of Ripple Labs, in a case specifically alleging unregistered offers and sales of digital assets.
However, SEC’s demand to file sur-sur-reply, in a bid to strike out Ripple’s affirmative defense known as sur-reply, has been denied.
Another Big Win for Ripple and XRP
Within the XRP Army camp, the Judge’s decision is a big win for Ripple and XRP as another SEC’s delay tactic has been thwarted.
It can be recalled that Attorney John Deaton had opined that the lawsuit could linger till next year due to the SEC’s constantly deployed delay tactics.
Meanwhile, Joseph Hall, the former SEC managing executive for policy, has predicted that the ongoing lawsuit between SEC and Ripple could end in favor of the latter.
In a recent podcast with Tony Edward of Thinking Crypto, Hall stated that the lawsuit is unnecessary in the first place. He said he’s not sure what the SEC intends to prove in the lawsuit.
He pointed out that Ripple Labs has been in operation for years before the SEC deemed it necessary to file a lawsuit.
Joseph Hall noted:
Hall added, “I’m very sympathetic to that argument. It’s a basic due process argument. The Ripple network was operating for years before the last-minute filing of a lawsuit against them.”
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