The upcoming battle between the SEC and Ripple is the talk of the crypto world. Experts are trying to guess what will happen next. Even though there’s been a basic decision already, Ripple’s top guys, Brad Garlinghouse and Chris Larsen, are still heading to a trial with a jury.
But there’s been a new development – will the case even make it to court? Read on.
Fred Rispoli Weighs In
Esteemed attorney Fred Rispoli has emerged as a major voice predicting the trial’s non-occurrence. Rispoli’s rationale paints a broader picture of what’s at stake and why the SEC might avoid such a confrontation.
Rispoli believes that targeting Garlinghouse and Larsen wasn’t purely on legal grounds. He opines that the main objective was to corner Ripple into a vulnerable settlement position, by pressuring the key figures of the company.
The Lawyer’s Reasons
Several factors, as per Rispoli, make the SEC’s position really weak:
- Potential Backfires in Court: The prospect of putting figures like Hinman and Clayton from the SEC on the witness stand, especially in the politically charged environment of New York, presents significant risks. The possible associations to the “Trump Administration” could unfavorably sway the jury.
- Recklessness Claims: The SEC’s accusation of recklessness in Ripple’s institutional sales might not hold water, considering the broader acceptance of programmatic sales in the industry.
- Evidence Gaps: Distinguishing domestic from international sales poses a challenge, as the evidence supporting the SEC’s claims on this front appears fragile.
- Trial Team Reshuffling: Recently, the SEC underwent a major overhaul of its trial team, which could hint at internal issues or lack of preparation.
- A Hectic Schedule: With a tight sequence of trials for the SEC leading up to the Ripple case, there’s a question of whether they’ll be fully prepared.
Rispoli concludes by highlighting the SEC’s possible strategy of waiting till the last possible moment, leveraging its virtually limitless resources. In typical corporate legal battles, both parties might find it beneficial to settle, avoiding hefty legal fees. The SEC, however, funded by taxpayer money, doesn’t have the same urgency. Yet, as Rispoli points out, if their high-stakes gamble fails, the aftermath will undoubtedly be intriguing.
