Did the SEC Just Hand Ripple a Massive Win? Here’s What Experts Are Saying

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.

But will it all be in vain? Will the SEC actually lose ground? Read on to find out why this appeal could be a strategic misstep for the regulators.

Prepare for the Battle Ahead!  

Hogan argues that even if the SEC manages to win its appeal, the case would be sent back to the trial court for additional fact-finding. This would extend the legal proceedings without providing a clear-cut win for the SEC.

In July 2023, Judge Analisa Torres issued a mixed ruling that shook the SEC. She determined that XRP tokens are not securities when sold to retail investors on exchanges, marking a significant defeat for the SEC. Conversely, she also concluded that Ripple’s sale of XRP to institutional investors violated federal securities laws, offering the SEC partial consolation.

Diverse and Differing Opinions

Kristina Littman, former Chief of the SEC’s Division of Enforcement, suggested that the SEC might avoid appealing Judge Torres’s ruling to prevent an unfavorable review at the appellate 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’s distinction between retail and institutional investors, arguing that tokens should have a consistent legal status regardless of the investor type.

The SEC now faces a critical decision on whether to appeal Torres’s ruling. Meanwhile, the case is in the remedies phase, with Ripple aiming to reduce fines and penalties. Although SEC Chair Gary Gensler has hinted at an appeal, the final decision is still pending.

Impact on Crypto

The SEC’s choice to appeal Judge Torres’s decision could significantly influence the future of cryptocurrency regulation. This decision will likely impact the regulatory landscape and shape how digital assets are treated in the United States.

Also Read: SEC Current Stance Follows China’s Past Action Says Key Figures Associated With Ripple

Stay tuned! The SEC’s decision on appeal will undoubtedly impact the future of cryptocurrency regulation. Keep an eye out for further updates as the story unfolds.