Ripple’s legal tug-of-war with the SEC is intensifying. SEC’s denial of the interlocutory appeal is creating a storm of questions in the subsequent desperate move of the regulatory body. Ripple’s CEO took a serious jibe at the SEC’s failure. Here’s what he has to say.
Gaps in SEC’s Arguments, Deaton Gave the Judgement Way Back
The recent victory is undoubtedly a nail in the coffin. But the question arises if the SEC will move to withdraw the case or go for a Settlement with Ripple. The court’s decision to reject the SEC’s appeal reinforces the earlier ruling that secondary XRP sales don’t fall under the category of securities transactions. This proves that Ripple’s actions in selling XRP tokens don’t breach securities law.
Judge Analisa Torres’ decision was a blow to the SEC’s legal strategy and pinpointed some critical loopholes in their arguments. The SEC’s stance relied on the assertion that certain sales of XRP could lead investors to anticipate profits based on Ripple’s endeavors. However, the judge found this argument lacking substantive evidence, further reinforcing the earlier judgment.
Garlinghouse Mocks SEC’s Desperate Appeal Drama
In his X post after Deaton, Brad Garlinghouse, Ripple’s CEO, didn’t miss the opportunity to comment on this latest development. He wryly noted that the SEC, in its pursuit of applying the “Howey test” in the case, ultimately ended up on the losing side. He mocks at SEC’s own created mess of this test based on that they got a bashing in court. It seems they need an excellent lawyer to understand the criticality of their own made-up securities law.
The Curious Case Will See a Trial or a Dismissal?
Looking ahead, the SEC now finds itself in a position where it must await further rulings in the broader lawsuit against Ripple before it can consider any appeals. The following central hearing is slated for April 23, 2024, though both parties are required to submit pre-trial documents by December 4, 2023.
According to Jeremy Hogan, the case will proceed to trial in April or be dismissed. Additionally, this decision strengthens the judge’s previous ruling, making it more challenging for the SEC to succeed in any potential appeal.
SEC can be in a better position if they work best in their interest to bring clear crypto rules as the current wave is running towards Ripple and Coinbase. It’s a decisive moment for the SEC.
XRP Price to Retests $0.54?
After trying to hit $0.54, XRP reached $0.53. Hours earlier, Judge Analisa Torres denied the SEC’s interlocutory appeal in the Ripple case. Similar to its last success, XRP only rose 5% this time, and analysts expect a bull run by the end of the year.
