Ripple Could Defeat The SEC If This Happens

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As a seasoned investor with over two decades of experience in the financial market, I find myself closely following the Ripple-SEC lawsuit. Having witnessed numerous legal battles between regulatory bodies and innovative industries, I can’t help but feel a sense of deja vu.

According to legal expert Fred Rispoli, Ripple stands a stronger chance of prevailing in their lawsuit against the U.S. Securities and Exchange Commission (SEC) if an impartial judicial panel is assigned to the case. Conversely, he suggests that the SEC may have a 70% to 80% likelihood of success if judges with a history of siding with the government are presiding over the trial.

How Ripple Could Defeat The SEC

During an appearance on the Thinking Crypto podcast, Rispoli stated that if the judges at the 2nd Circuit Court of Appeal were impartial, the chances would lean towards Ripple by about 70%. However, he pointed out that the outcome could be influenced significantly by which of the three judges assigned to the case might have a particular bias.

According to CoinGape’s report, the US Securities and Exchange Commission (SEC) filed an appeal on August 7 regarding Judge Analisa Torres’ final judgment. The XRP community is curious as to whether this appeal pertains solely to the $125 million penalty or if it encompasses Judge Torres’ ruling on last year’s programmatic sales as well.

Fred Rispoli expressed his viewpoint, indicating that it’s probable the SEC intends to challenge all aspects of the case. He emphasized that the notice of appeal pertains to the summary judgment decision, not just the penalty ruling. Consequently, the Securities and Exchange Commission has the authority to contest any rulings encompassed within the summary judgment.

The legal expert believes that the Commission will focus on programmatic sales, which involves Judge Torres ruling that XRP isn’t a security in itself. He added that they will also seek a higher fine than the $125 million that Judge Torres awarded.

Fred Rispoli emphasized that a potential decision by the 2nd Circuit regarding programmatic sales could significantly impact XRP holders and the wider cryptocurrency community. He explained that if the court rules in favor of the SEC, the regulatory body may use this ruling as a precedent for actions against crypto platforms like Binance, Coinbase, and Kraken in their own cases.

How The SEC Could Lose It All

Fred Rispoli hinted at a possibility where the 2nd Circuit might reverse Judge Torres’ decisions in favor of the SEC, should Ripple be granted an exceptionally favorable panel. Furthermore, he referenced Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, who mentioned they plan to submit a counter-appeal.

The legal expert remarked that it would be “foolish” if the crypto firm didn’t file a cross-appeal. He claimed that a cross-appeal would further solidify the company’s 70% chance of winning the appeal as the court will likely reach a “split the baby decision” if this happens. Rispoli explained that this means that the 2nd Circuit will decide to affirm all Judge Torres’ rulings rather than give a different opinion.

In simpler terms, the lawyer anticipates that the ongoing case might persist until at least January 2026. This prediction is based on both parties’ schedules for submitting their court documents. Specifically, he suggested that the SEC may not file its initial brief until the end of this year. Following that, he expects Ripple to respond with their brief around March.

As a crypto investor, I find myself in agreement with the lawyer’s advice. It seems prudent for the crypto firm to actively engage in legislative efforts, given the potential length of this case. Yet, it’s reassuring that Judge Torres’ decision on XRP not being classified as a security is still valid until there’s either regulatory clarity or a ruling in the appeal. This means, for now, we can continue to operate under the current legal landscape.

During the 2021 bull market, the ongoing legal action between Ripple and the Securities and Exchange Commission (SEC) had a detrimental effect on the XRP price, with the lawsuit being initiated by the SEC in December 2020. Yet, despite the pending SEC appeal, crypto analyst Egrag Crypto has forecasted that the value of XRP could surpass $5.

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2024-10-05 23:16