As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed countless legal battles between regulatory bodies and innovative tech companies. In light of the recent news that the SEC has initiated an appeal against the final ruling in the Ripple case, I find myself intrigued rather than alarmed.
On Wednesday, the Securities and Exchange Commission (SEC) initiated an appeals process regarding their case against Ripple Labs. The reasons behind this appeal have yet to be disclosed, leaving the XRP community unsure about the details. However, a pro-XRP lawyer named Bill Morgan has stated via XRP’s official channel that the status of XRP as a secondary market asset, such as its trading on U.S. cryptocurrency exchanges, is not being contested in this case.
XRP Status On Secondary Market Is Safe
Morgan clarifies the differences among various sales categories, specifically focusing on those that have been subject to legal scrutiny. On X, Morgan points out a source of confusion over the concept of secondary sales. He explains, “Some individuals categorize Ripple’s sales, which were conducted through automated systems to retail investors via exchanges, as secondary sales.
In simpler terms, Morgan explains that the court’s verdict didn’t tackle the matter of secondary sales, such as transactions between individuals like us selling XRP on an exchange to other private investors. He highlights that this specific kind of deal falls outside the bounds of the appeal, a fact he says was explicitly mentioned in a footnote within the summary judgment decision. Morgan further clarifies that because this issue wasn’t decided upon, it cannot be part of the appeal.
According to Morgan’s explanation, the SEC’s appeal primarily concentrates on the sales or distribution of Ripple within their programmatic sales. He further adds that the appeal might broaden to cover other legal aspects such as penalties, injunctions, and the return of any ill-gotten gains (disgorgement issues).
In their latest chat, Morgan mentioned past talks with ex-SEC lawyer Marc Fagel. He stated, “I remember we both thought it was probably, but not definitively, that the appeal would mainly revolve around programmatic sales and other distribution matters.” This suggests they were in agreement about what areas the SEC’s case is likely to challenge.
Today, FOX Business journalist Eleanor Terrett highlighted the technicalities of the appeal process regarding the SEC case. She mentioned that the SEC hasn’t submitted their Form C to the Second Circuit yet, which outlines what they are appealing. She emphasized the urgency for the SEC to file this document promptly so Ripple can understand how to proceed further. Additionally, she pointed out that Ripple has a 14-day window from today if they decide to file a cross-appeal.
As a crypto investor, I’m finding myself in anticipation alongside the legal community, as they expect Ripple to respond with a cross-appeal following the recent court ruling. Sean M. Hodge, in his own words, expressed this doubtlessly, “I find it challenging to imagine Ripple won’t file a cross-appeal.” Fred Rispoli, founder of HODL Law, shared his prediction on social media platform X, stating, “SEC appeals. Ripple will cross appeal. SEC’s ongoing district court cases against Coinbase and Kraken persist. Life goes on. Stay calm.
To highlight, Ripple’s top legal executive, Stuart Alderoty, has proposed in his recent update on LinkedIn that they might file a cross-appeal. This hints at continuous strategic thinking within Ripple regarding their approach to the Securities and Exchange Commission’s (SEC) legal actions.
At press time, XRP traded at $0.5281.
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2024-10-04 13:41