According to attorney Joseph Hall, a former official with the United States Securities and Exchange Commission (SEC), it is highly likely that the SEC will lose all of its gains in the lawsuit against Ripple. This is seen as a victory for Ripple in the long-running lawsuit.
Former SEC official claims the regulator could lose everything in its lawsuit against Ripple
The legal battle between the SEC and Ripple has been going on for over a year since December 2020, when the commission filed a lawsuit against the company as well as two executives Brad Garlinghouse and Chris Larsen claiming they traded unauthorized $1.3 billion in XRP as an unregistered security.
Up to now, Hall believes that Ripple seems to have the upper hand in this battle. Notably, he previously spent two years at the SEC as Executive Director of Policy under President William H. Donaldson.
In a recent live discussion with Tony Edward, the former SEC official said he was quite confused by the question of why the SEC decided to sue Ripple because the SEC is facing a high risk of losing the lawsuit. “I have been following this case for quite some time. The whole process of their pursuit of Ripple could essentially be shut down,” he said
In addition, Hall emphasized that more significant action between Ripple and the SEC this year is highly anticipated as the discovery phase of the case has ended. However, due to the slow progress of the litigation, the closing date is unlikely to be completed before the end of 2022. “There will be no serious settlement negotiations until the SEC is required to complete the transfer of the assets. whether specific authenticity,” Hall added.
Earlier this month, the SEC compared the lawsuit against Ripple to that involving blockchain company LBRY Inc. Last year, the regulator accused LBRY of organizing an unregistered securities sale, a move that could threaten Americans’ ability to trade with cryptocurrency. LBRY CEO Jeremy Kauffman responded lightly by arguing that company tokens are not securities because LBRY did not conduct an ICO. As a result, to date, the SEC has not filed any other charges against LBRY.
The SEC asked to file a Sur Sur-Reply to cite a fellow District Court Judge’s ruling from a different circuit striking an entirely different defense while not striking the substantially similar defense that’s in question. The SEC should apologize to her for having to type Denied. https://t.co/sRAjPqP8mS
— John E Deaton (@JohnEDeaton1) February 23, 2022
Contrary to the indecisive action from the SEC, Ripple’s top lawyer, Jeremy Hogan, is confident Ripple’s Fair Notice Protection and community strength will be strong enough to help the company weather the allegations.
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