News
  • Elena R
    author-profile

    Elena R right arrow

    Author

    Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

    • author twitter

  • 2 minutes read

Ripple’s Response to SEC Lawsuit: Key Developments and Legal Expert Insights

Ripple CEO Brad Garlinghouse has shared the companyโ€™s plan in response to the ongoing lawsuit with the U.S. SEC. The parties are working on a briefing schedule regarding the SECโ€™s claim of $770 million in disgorgement for alleged Section 5 violations in Rippleโ€™s institutional XRP sales.

This signals a crucial phase in the legal battle, with   gearing up to challenge the SECโ€™s significant financial claim. This development prompts legal experts to reference the Morrison v. National Australia Bank U.S. Supreme Court case, emphasizing its potential impact on the sovereign rights of foreign nations. 

Jeremy Hogan Sees Some New Spark

Whereas, lawyer Jeremy Hogan finds the case intriguing, suggesting that Rippleโ€™s sales must have occurred โ€œin the U.S.โ€ or on a U.S. exchange, aligning with the Supreme Courtโ€™s stance. The uncertainty lies in how the SEC plans to proceed and whether it might extend its jurisdiction beyond U.S. borders. The prospect of other countries like the UK, France, and Australia filing Amicus Briefs, as witnessed in the Morrison case, adds an intriguing layer to the unfolding legal drama. 

Some More Twist & Turnsโ€ฆ

However, lawyer James Farell points out that Judge Torres has already addressed this matter by rejecting Rippleโ€™s argument in the motion to dismiss the SEC v. Ripple lawsuit. Pro-XRP lawyer Bill Morgan chimed in, expressing skepticism about the likelihood of foreign countries intervening, given jurisdictional concerns and the precedent set by SEC v. Govil. 

SECs May Get Disappointed on Settlement Amount

The core debate centers on whether Rippleโ€™s activities had a sufficient nexus with the U.S. to warrant SEC intervention. As both parties engage in discussions, there is speculation about a potential settlement, possibly involving a reduction in the SECโ€™s requested disgorgement amount. The intricate details and jurisdictional complexities keep the outcome uncertain, with experts closely watching for further developments in this high-stakes legal battle that could have far-reaching implications for the cryptocurrency industry and the application of U.S. securities law.

What Makes Him Sure of the Win? 

Charting the winning odds of the case, he highlights a legal victory for Binance in the Anderson v. Binance case, which restricted the application of U.S. securities laws outside the United States. He further suggests that this legal precedent could benefit Ripple, indicating a connection between Binanceโ€™s case outcome and potential implications for Ripple in its ongoing legal battle. The X post acknowledges the legal intricacies, categorizing the information as โ€œlegal nerd stuff.โ€

Show More

Related Articles

Back to top button