Top Lawyers Believe SEC Will Likely Face a Setback in Appeal of Ripple Case
Jeremy Hogan, the managing partner at Hogan & Hogan, has offered his prediction on the outcome of the SEC’s appeal in the Ripple case, cautioning that it may not result in a clear victory for the SEC and could further complicate the lengthy legal battle.
According to Hogan, even if the SEC is successful in its appeal, the case would be sent back to the trial court for further fact-finding. This suggests that the legal process could be drawn out without a definitive win for the SEC.
The Ripple case has seen a controversial ruling from Judge Analisa Torres in July 2023. While she acknowledged that XRP tokens are not considered securities when sold to retail investors on exchanges, which was a setback for the SEC, she also ruled that Ripple’s sale of XRP to institutional investors did violate federal securities laws, providing partial relief to the SEC.
This ruling has caused confusion in the Ripple case. Former SEC Division Chief, Kristina Littman, has suggested that the SEC might choose not to appeal Judge Torres’s ruling to avoid a potentially unfavorable review at the circuit level. However, this decision is complicated by US District Judge Jed Rakoff’s opposing view in the SEC’s case against Terraform Labs. Rakoff rejected Torres’s distinction between retail and institutional investors, arguing that tokens should have a consistent legal status irrespective of the investor type.
As the SEC decides whether to appeal Judge Torres’s ruling, the case has entered the remedies phase, with Ripple seeking to reduce the fines and penalties imposed. While SEC Chair Gray Gensler has hinted at the possibility of an appeal, the final decision is still pending.
The SEC’s choice to appeal Judge Torres’s decision could have a significant impact on the future of cryptocurrency regulation.
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Tags: Ripple Vs SEC