SEC's Chances of Winning Appeal Against Ripple Slender, Predicts Lawyer Bill Morgan
Summary:
Lawyer Bill Morgan predicts a slim 3% chance for the U.S. Securities Exchange Commission (SEC) to win the appeal in their ongoing lawsuit against Ripple. This prediction comes after the SEC's failed attempt to prove XRP sales violated securities laws and their consequent dismissive motion to repeal charges against Ripple's CEO and Executive Chair. Morgan further noted that the rest of the case has been dismissed, and a final judgment could possibly come the next year.
Bill Morgan, a lawyer closely monitoring the ongoing lawsuit against Ripple by the U.S. Securities and Exchange Commission (SEC), has put the SEC's likelihood of claiming victory in the case at approximately 3%. Using his X (formerly Twitter) account as a platform for commentary, Morgan suggested that any potential reasons for appeal would likely favor Ripple, especially where Ripple's On-Demand Liquidity (ODL) sales are concerned, as they don't fulfill at least two of the Howey test criteria.
Morgan's conjecture was made in response to shared government statistics by renowned lawyer Jeremy Hogan. These figures demonstrate a 14.2% chance of the SEC being successful in their appeal against Ripple. The regulator and Ripple have engaged in an enduring three-year legal clash, concluded recently when a judge declared that XRP sales on cryptocurrency exchanges did not breach security laws. This marked a massive victory for Ripple, whose business took a substantial hit when leading U.S crypto exchanges delisted XRP in the wake of the SEC lawsuit. The SEC then failed in their subsequent appeal, with Judge Torres ruling on Oct. 4 that the security regulator didn't prove the existence of controlling legal queries or substantial reasons for differing opinions on the initial ruling.
Further, the SEC, in sustaining another significant defeat, sought to repeal all charges leveled against Ripple CEO Brad Garlinghouse and Executive Chair Chris Larsen on October 19.
Responding to this motion, Stuart Aldeorty, Ripple's Chief Legal Officer, described the SEC's decision as a "surrender." Ripple, in an official statement, characterized it as a "remarkable capitulation."
Bill Morgan highlighted that, with the dismissal of the rest of the case, there would be no trial next year. He projected that the court might issue a "final judgment" at some point in the forthcoming year. The news follows the emergence of Chainalysis in the wake of the Mt. Gox meltdown, as highlighted in the Blockchain Detectives magazine.
Published At
10/23/2023 9:30:40 AM
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