Legal Experts Forecast Verdict and Potential Appeals in Ripple vs SEC Case
With the SEC vs Ripple legal battle drawing to a close, legal experts are now considering the next steps in the case. Barring any unforeseen developments from the SEC, it is anticipated that the long-awaited final verdict will be delivered in July. Lawyers believe that the SEC is likely to challenge the summary judgement issued by Judge Torres, which declared that XRP’s programmatic sales do not constitute security contracts. This ruling has paved the way for future legal proceedings.
Legal experts are speculating on the prospects of an appeal. Pro-XRP lawyer Fred Rispoli foresees a decision on remedies from Judge Torres by the end of July or early August, with a possible announcement on July 13. The SEC is pushing for a hefty fine of $2 billion, while Ripple argues that a penalty of no more than $10 million is justified.
Rispoli also mentioned that a pre-judgement settlement is unlikely, although there is still a chance for unresolved issues to be addressed. The SEC retains the option to appeal the ruling on programmatic sales but cannot contest the dismissal of claims against Ripple executives Brad Garlinghouse and Chris Larsen.
Former SEC securities lawyer Marc Fagel believes that the SEC is likely to appeal the summary judgement regarding XRP’s liability, disagreeing with Judge Torres’ interpretation of the Howey test. Fagel also suggested that an appeal on the remedies order is a possibility but not very probable.
The controversy surrounding expert witness testimony continues, with lawyers like Bill Morgan and Jeremy Hogan predicting that Ripple may not succeed in excluding the testimony of expert witness Andrea Fox. However, Rispoli noted that Judge Torres may not address this issue if her final ruling favors Ripple.
The recent settlement between Terraform Labs and the SEC has had a significant impact on the SEC vs Ripple case. Terraform and its co-founder, Do Kwon, were slapped with a hefty fine of $4.47 billion, sparking debate within the crypto community. Critics like Coinbase CLO Paul Grewel and Ripple CLO Stuart Alderoty argue that the SEC’s punitive measures are unjust and offer little relief to fraud victims.
The crisis at Terra Luna resulted in a $40 billion loss for investors, leading to scrutiny of the SEC’s enforcement actions. Former SEC lawyer James Farrel noted similarities between the injunction in the Terraform case and Ripple’s arguments regarding penalty proportionality. Ripple maintains that a fine exceeding $10 million would be excessive, citing precedents from previous crypto cases.
For more insights on the Ripple vs SEC lawsuit and the implications of the Terraform Labs settlement, stay tuned.