The post SEC Likely to Face Setback in Ripple Case Appeal: Why Top Lawyers Think So appeared first on Coinpedia Fintech News
Jeremy Hogan, managing partner at Hogan & Hogan, predicts that the SEC’s appeal in the Ripple case may not end in a decisive victory. He warns that the SEC’s efforts could backfire, complicating the already lengthy legal battle.
Read on to get more clarity about the lawyer’s argument!
Top Lawyer’s View on SEC’s Appeal Strategy Explained
Hogan believes that even if the SEC wins its appeal, the case would return to the trial court for more fact-finding. This means the legal process could drag on without any clear win for the SEC.
Controversial Ruling by Judge Torres in the Ripple Case
In July 2023, Judge Analisa Torres issued a ruling that had mixed results for the SEC. She stated that XRP tokens are not securities when sold to retail investors on exchanges, which was a significant setback for the SEC. However, she also ruled that Ripple’s sale of XRP to institutional investors did violate federal securities laws, giving the SEC partial relief.
Emergence of New Confusion in the Ripple Case: What’s It?
Kristina Littman, former SEC Division Chief, suggested that the SEC might avoid appealing Judge Torres’s ruling to prevent an unfavorable review at the circuit level. This decision is complicated by US District Judge Jed Rakoff’s opposing view in the SEC’s case against Terraform Labs. Rakoff rejected Torres’ distinction between retail and institutional investors, arguing that tokens should have a consistent legal status regardless of the investor type.
Ripple-SEC Legal War: What’s Next?
The SEC must now decide whether to appeal Torres’s ruling. Meanwhile, the case is the remedies phase, with Ripple aiming to reduce fines and penalties. Although SEC Chair Gray Gensler has hinted at an appeal, the final decision is still pending.
The SEC’s choice to appeal Judge Torres’ decision could significantly influence the future of cryptocurrency regulation.
Also Read: SEC Current Stance Follows China’s Past Action Says Key Figures Associated With Ripple
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