Ripple Brings a Viral Tweet to Support its Stance on XRP’s Legal Nature

In a recent filing by Ripple, the defendant has cited a viral tweet that seems to vindicate its position that the SEC failed to provide any clear direction concerning the nature of the token and take the firm on board before filing the lawsuit.

SEC’s Email to XRP Holder:

Ripple has cited a Dec 24 tweet by the Twitter user named “Frank”. The tweet shows an email, netizen received by the SEC as a response to his query about the nature of the XRP token. Through the email, received by the user on OCT 14, 2020, the Fed Agency told Frank that the SEC has not issued any direction on the matter, and he[the user, Frank] should review chairman Jay Clayton’s statement on cryptocurrencies and ios.

@Ripple @SEC_News @HesterPeirce I have bought XRP early 2018 and wasn’t sure if I bought an security because there was no decision yet. So I asked the SEC here the answer to my concerns. Are they lying to me???? #XRPCommunity @bgarlinghouse @BrianBrooksOCC @galgitron pic.twitter.com/qCMXTh9vNL

— frank (@frank14492100) December 24, 2020

Mentioning the tweet and William Hinman’s testimony, Ripple asserted:

“This testimony, the documents produced – and potentially the documents that should be produced in discovery as a result of Defendants’ Motion – fatally undermine the SEC’s allegations that the Individual Defendants acted recklessly in failing to recognize Ripple’s sales of XRP as an unregistered securities offering as at that time, securities law experts of Mr. Hinman’s stature (to say nothing of the full Commission) had not reached that conclusion themselves, despite looking into the issue.”

Ripple’s “Fair Notice” Motion:

It is to be noted that all of the above-mentioned stuff is part of Ripple’s “fair notice” motion against the SEC. If Ripple proves, beyond the court that the agency failed to provide any notice to the defendant, about the XRP’s nature, before filing the lawsuit on Dec 22, the lawsuit would be tilted drastically in favor of Ripple.

On contrary, if Ripple losses the “fair notice” motion, the lawsuit will continue as usual.