Slim Chances Ahead: Analyzing the SEC’s Position
The United States Securities and Exchange Commission’s (SEC) ongoing legal tussle with Ripple has seen a series of developments that hint at a diminishing stance for the SEC. The recent discharges against Ripple CEO Brad Garlinghouse and Executive Chair Chris Larsen, coupled with a favorable ruling for retail XRP sales, have set a precedent that challenges the SEC’s grounds for appeal.
Experts Weigh In: Predicting the Appeal Outcome
Attorney Bill Morgan, tracking the lawsuit keenly, shared his insights on platform X (formerly Twitter). Morgan perceives no clear appellate error aside from those favoring Ripple concerning On-Demand Liquidity (ODL) sales, which he argues, fail to satisfy at least two criteria of the Howey Test. He places the SEC’s odds of a successful appeal against Ripple at a scant 3%.
Contrastingly, attorney Jeremy Hogan presented a slightly higher, yet still marginal, success rate of 14.2% for the SEC, based on governmental statistics concerning appeal success rates across various lawsuit categories.
Ripple’s Resilience: Reflecting on the Legal Voyage
The three-year-long courtroom saga ended in a triumph for Ripple, as a judge affirmed that XRP sales on cryptocurrency exchanges didn’t breach securities legislation. This verdict brought respite to Ripple, which had endured a hefty business loss in the U.S., courtesy of the SEC lawsuit leading to major crypto platforms delisting XRP.
Ripple’s Recent Victories: A Recap
On October 4, Judge Analisa Torres further dented the SEC’s cause by negating their appeal against the initial judgment. Fast forward to October 19, the SEC opted to drop all charges against Ripple’s top executives, marking another significant win for the blockchain company.
Ripple’s Chief Legal Officer, Stuart Alderoty, dubbed the SEC’s recent move as “a surrender,” while the official statement from Ripple labeled it a “stunning capitulation.” With the rest of the case dismissed by the SEC, a trial in the coming year is off the table. Morgan forecasts that a “final judgment (probably) sometime next year” is on the horizon, potentially bringing this legal drama to a conclusive end.