In a publish on X, Jeremy Hogan, a pro-XRP lawyer, expressed skepticism in regards to the U.S. Securities and Exchange Commission (SEC) reaching a definitive victory in its ongoing authorized battle with Ripple (XRP). The case, presently poised for the U.S. Court of Appeals for the Second Circuit, might not finish favorably for the SEC, even when it wins the attraction.
SEC Faces Tough Road in Ripple Appeal
Hogan believes that the complexities of the case imply the SEC may face an uphill battle through the attraction. Even with a possible win, the case would doubtless revert to the trial court docket for additional factual assessments. This displays a state of affairs the place the SEC’s preliminary victory may result in extra extended authorized proceedings.
Sound logic. Plus do not forget that even when the SEC “wins” the attraction, the case simply comes again right down to the trial court docket for additional factual determinations. There is not any remaining superb victory for the SEC up in the 2nd Circuit, simply the potential for catastrophe.
— Jeremy Hogan (@attorneyjeremy1) June 20, 2024
This predicament comes after a district court docket determination by Judge Analisa Torres, which, in July 2023, dominated that XRP tokens will not be securities when offered to retail traders on exchanges. However, the identical determination discovered Ripple violating federal securities legal guidelines by way of its gross sales to institutional traders.
The judicial panorama exhibits various interpretations, complicating the SEC’s place. Former SEC Division Chief Kristina Littman hinted final month that the SEC may not escalate the Ripple ruling to the next court docket, doubtlessly leaving Torres’ determination as a standalone district court docket opinion.
This determination starkly contrasts with U.S. District Judge Jed Rakoff’s rejection of comparable reasoning in the SEC’s case towards Terraform Labs, the place he argued that the authorized standing of a token shouldn’t range primarily based on the investor sort. This viewpoint gained traction in the Coinbase determination, marking a win for the SEC.
XRP Seeks Relief in Ongoing SEC Case
The Ripple case stays in the treatment part, with Ripple searching for to scale back fines and penalties considerably. This part follows SEC Chair Gary Gensler’s remarks in July, suggesting the potential for an attraction towards the Torres ruling.
Adding to the controversy, Hogan has criticized the SEC proposed $2 billion high quality on Ripple Labs, arguing that it contradicts the SEC’s mission to guard traders. He identified that imposing such a high quality would necessitate Ripple to promote a considerable quantity of XRP, doubtlessly harming retail holders on account of value impacts.
Also Read: Ripple XRP Case Update June 20: “Judge Torres Was Right On XRP”, SEC May Not Appeal
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