As a seasoned researcher and follower of the digital asset market for over two decades, I find myself intrigued by the ongoing XRP lawsuit between Ripple Labs and the SEC. The latest developments, as discussed by James Murphy, also known as “MetaLawMan,” offer fascinating insights into the complexities of this case.
On Crypto Law TV, attorney James Murphy, or “MetaLawMan,” chatted with host Kristi Warner about the current status of the XRP lawsuit between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). They talked about the SEC’s recent appeal and possible strategies that Ripple could consider in response.
Murphy initially expressed his expectation for the Securals and Exchange Commission (SEC) to challenge Judge Analisa Torres’ summary judgment, which declared Ripple’s institutional sales of XRP as unregistered securities. Simultaneously, he emphasized that the digital asset XRP itself does not fall under the category of a security. In simpler terms, Murphy said, “I assumed the SEC would appeal this decision. It’s common to file an appeal once you lose some or all of a case, after the final judgment has been made.
As a researcher, I observed that the SEC’s swift move for an interlocutory appeal—a mid-case appeal—indicated their strong disapproval of Judge Torres’ ruling which declared XRP as not a security. In essence, the severity of this decision left them in such a state of dismay that they felt compelled to initiate an immediate appeal.
Murphy highlighted the key points he anticipates the SEC may challenge in the appeal. Crucially, the SEC might argue against Judge Torres’ ruling that transactions involving XRP on secondary markets did not qualify as investment contracts. “I believe,” Murphy stated, “that this matter is very likely to be the main point of contention during the appeal.
Additionally, the SEC could argue against the judge’s ruling that no restitution should be paid, a penalty involving the wrongdoer returning unjust profits. Murphy clarified that as per the latest rulings in the Second Circuit Court of Appeals, disgorgement can only be applied if the victims have suffered financial losses. “The SEC didn’t recover any monetary damages in this case because it was the retail XRP holders who were harmed,” he further stated.
Although less probable, Murphy mentioned the SEC might dispute the $125 million civil penalty imposed on Ripple. “I think this would be a very, very weak argument […] The judge has a lot of discretion,” he opined.
XRP Lawsuit: Will Ripple Cross Appeal?
In simpler terms, Murphy talked about the indications from CEO Brad Garlinghouse and CLO Stuart Alderoty suggesting a potential appeal, as per Bitcoinist‘s report. Murphy voiced his strong agreement with this action, especially regarding the categorization of institutional sales as investment contracts.
He strongly believes that it would be beneficial to present an argument that appeals to a wide range of perspectives in this case, and that’s exactly what he proposed. Murphy explained that large-scale investors bought XRP at lower prices with the intention of reselling them, similar to how wholesalers buy goods such as oranges or diamonds for profit, not as an investment in Ripple’s company. He reiterated that it was not an investment contract; instead, it served a different purpose.
Murphy outlined a comprehensive schedule for the appeal proceedings, noting that both sides must submit their briefs and outline any issues they intend to appeal by certain dates. He approximated that a verdict from the Second Circuit Court of Appeals might not be delivered until the initial quarter of 2026. Essentially, his prediction is around a year or so from now, possibly during the first three months of 2026, we can expect a decision to be made.
Additionally, he hinted at the likelihood of multiple parties connected with the industry submitting legal opinions (amicus briefs), which could possibly prolong the schedule. As Murphy explained, “It seems we will witness numerous amicus briefs being submitted […] Coinbase clearly emphasizes this is a critical matter.
At press time, XRP traded at $0.52.
Read More
- LUNC PREDICTION. LUNC cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- USD PHP PREDICTION
- BICO PREDICTION. BICO cryptocurrency
- USD ZAR PREDICTION
- USD CLP PREDICTION
- SOL PREDICTION. SOL cryptocurrency
- USD COP PREDICTION
- FJO PREDICTION. FJO cryptocurrency
- G PREDICTION. G cryptocurrency
2024-10-10 18:11