As a seasoned legal analyst with over two decades of experience in financial regulation, I find myself intrigued by this ongoing legal tussle between Ripple and the SEC. The opinions expressed by Dennis Kelleher and Stuart Alderoty, both respected figures in their respective fields, offer fascinating insights into the potential outcomes of an appeal.
According to Dennis Kelleher, CEO of Better Markets, he has shared his prediction about who might emerge victorious if an appeal ensues in the ongoing legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC). However, neither party has explicitly stated their intention to file an appeal, leaving the possibility open.
The SEC Has A 90% Of Winning An Appeal
Kelleher mentioned in an X (formerly Twitter) post that the SEC has a 90% chance of winning on appeal in its long-running legal battle against Ripple. The Better Markets CEO explained that Judge Analisa Torres got “90 years of law upside down” when she ruled that institutional investors were protected by the securities laws, not retail investors. He further claimed that other Judges have chosen not to follow the ruling.
Kelleher mentioned Judge Torres’ decision from last year, where she classified Ripple’s institutional sales of XRP as investment contracts, but deemed their programmatic sales as not being investment contracts. This judgment could be one that the SEC might choose to challenge if they decide to appeal, as it contradicts their stance that XRP functions as a security.
In simpler terms, Stuart Alderoty, Ripple’s Chief Legal Officer, is confident that Ripple will prevail if the SEC decides to appeal the recent verdict. He estimates the SEC’s chances of winning the appeal as slim, around 10%. Furthermore, he mentioned that Ripple is prepared to comply with the $125 million penalty ordered by Judge Torres for allegedly violating securities laws.
Earlier, Alderoty suggested that the SEC might not be wise to appeal the decision, implying that a reasonable entity would choose not to do so. Similarly, Ripple appears unlikely to challenge any of the court’s rulings, as they have indicated their intention to pay the penalty and continue with their business operations.
Clarifying The Misconception
Contrary to Kelleher’s claims that other Judges have rejected Judge Torres’ ruling, it is worth mentioning that Judge Amy Berman Jackson adopted Judge Torres’ approach while giving her ruling in the case between Binance US and the SEC. Judge Jackson dismissed the SEC’s argument that the Binance Coin (BNB) secondary sales were investment contracts.
In addition, she dismissed the suggestion that cryptocurrencies themselves are considered securities. However, both judges hinted at using the Howey Test to demonstrate that crypto tokens don’t fit the definition of securities. Instead, their classification as investment contracts could only be valid if they were marketed in a way that resembled an investment.
Judge Torres determined that Ripple’s XRP sales to institutional clients were classified as investment contracts because these investors presumably anticipated profits. Conversely, retail investors purchasing these tokens through secondary sales were unaware of the seller’s identity and could not have foreseen any potential gains from their purchases.
Cover image from Dall-E, chart from Tradingview
Read More
- SOL PREDICTION. SOL cryptocurrency
- USD PHP PREDICTION
- USD COP PREDICTION
- BTC PREDICTION. BTC cryptocurrency
- TON PREDICTION. TON cryptocurrency
- Strongest Magic Types In Fairy Tail
- ENA PREDICTION. ENA cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- AAVE PREDICTION. AAVE cryptocurrency
- ADA PREDICTION. ADA cryptocurrency
2024-08-20 19:41