XRP Attorney Bill Morgan Explains Why a Ripple vs SEC Settlement is Currently “Unlikely”

Renowned XRP lawyer Bill Morgan has taken to social media to express his concerns about the ongoing legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs. Morgan specifically focused on Kraken’s reference to Ripple’s case and Judge Torres’ decision on programmatic sales of XRP. According to Morgan, Kraken’s strategic use of these findings indicates that the SEC will be strongly motivated to appeal Judge Torres’ decision, making a settlement in the SEC vs Ripple case seem unlikely at the moment.

Morgan pointed out the potential hurdles for the SEC in reaching a settlement, citing Kraken’s arguments that question the SEC’s ability to demonstrate a reasonable expectation of profits. If Judge Torres’ summary judgment decision stands without a successful appeal, it could pose a significant obstacle for the SEC in settling the broader Ripple case.

Kraken’s legal defense strategy revolves around challenging the SEC’s classification of certain tokens, including ALGO, ADA, and MATIC, as securities. The exchange argues that the SEC has failed to establish clear guidelines for a direct relationship between the issuers of these tokens and Kraken’s customers. Kraken draws parallels between its blind bid/ask trading mechanism and Ripple’s programmatic sales, which Judge Torres has deemed to be operating beyond the scope of investment contracts. The exchange also emphasizes the lack of a tangible connection between token issuers and buyers, asserting that the SEC fails to demonstrate the necessary relationship for securities traded on Kraken.

Kraken CEO Jesse Powell believes that the SEC’s actions against the exchange are retaliation for its congressional testimony, where Kraken advocated for a more precise legal framework on digital assets and suggested restrictions on the SEC’s jurisdiction over calling crypto “securities.” Powell sees the SEC’s intentions as simply retaliation, intimidation, and harassment.

In summary, as the SEC vs Ripple case continues, Judge Torres’ rulings have implications for the entire crypto and finance industry. Kraken’s strategic use of judgment precedents from Ripple’s case adds complexity to the SEC’s settlement actions, according to Bill Morgan.