Ripple's General Counsel, Stuart Alderoty, recently highlighted the U.S. Securities and Exchange Commission's (SEC) losing streak in the Supreme Court, with five losses in their last six cases. In his tweet, Alderoty noted the most recent case, SEC v Cochran, decided on April 14.
The case, Securities and Exchange Commission, et al. v. Michelle Cochran, centered on the question of whether federal district courts have jurisdiction to hear challenges to unconstitutional aspects of federal agencies' administrative proceedings.In a unanimous ruling, the Supreme Court held that Texas accountant Michelle Cochran had the right to challenge the constitutionality of her Administrative Law Judge's (ALJ) removal protections in federal court before undergoing an administrative adjudication.
In March, Ripple Labs stated that the recent Supreme Court verdict in Bittner v. United States supported their fair notice defense in the ongoing lawsuit with the SEC.
The company asserts the SEC failed to provide clear guidance on compliance with securities laws regarding digital assets, causing confusion among market participants.
In the most recent development, the defendants filed a response to the SEC's letter, challenging the fair notice argument and its reliance on the Howey precedent.