In the ongoing legal battle between the U.S. Securities and Exchange Commission (SEC) and blockchain firm Ripple, former SEC official John Reed Stark has warned the XRP Army about a recent development in the case.
The SEC wrote a letter to the court, citing an Apr. 7 decision in the SEC's case against Commonwealth Equity Services over alleged disclosure violations.
According to Stark, the letter reminds the court of the weakness of Ripple's so-called "fair notice" defense and emphasizes that ignorance of the law is "no excuse."
As reported by U.Today, SEC asserts that the Commonwealth decision supports its position that Ripple received fair notice of what constitutes a security, and therefore must be registered with the SEC per the Howey Test.Stark also noted that the SEC has taken unprecedented measures to make its views known regarding digital assets.
The regulatory body has used multiple distribution channels to share concerns about crypto, digital trading platforms, and other digital asset products and services.
He added 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.