Ripple Celebrates 3-Nil Win as SEC Faces Major Setback in Crypto Enforcement Tactics
Several factors likely influenced the SEC’s current decision.
The case could now move to appeal faster as expected, as no trial in 2024.
As Crypto News Australia has reported, Ripple has had a huge win in its ongoing lawsuit.
However, Stuart Alderoty, the Chief Legal Officer at Ripple, stated that the decision made on Thursday U.S. time is not what it may seem at first. Ripple and the United States Securities and Exchange Commission (SEC) did not come together and make a settlement deal.
Rather the SEC dropped the charges against Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen in which the agency alleged they recklessly aided and abetted Ripple in the sale of XRP as a security.
Garlinghouse called the win a “3:0” score but pointed to the more sinister side of things. The CEO stated that with the lawsuit, the SEC had tried to personally harm Larsen and him.
Ironically, he said the SEC met with Sam Bankman-Fried, who is now involved in legal proceedings in one of the largest ever fraud cases in finance. The case against Garlinghouse and Larsen was not a fraud case.
Today was an even better day.
Ripple: 3
SEC: 0
In all seriousness, Chris and I (in a case involving no claims of fraud or misrepresentations) were targeted by the SEC in a ruthless attempt to personally ruin us and the company so many have worked hard to build for over a… https://t.co/YsQxewFnj9
— Brad Garlinghouse (@bgarlinghouse) October 19, 2023
John Deaton Explains
In a spaces meeting on X, lawyer John Deaton said he always believed the trial against the executives wouldn’t proceed. He said, “They [the SEC] had to proof recklessness, that XRP was so clear to be a security, that these two executives were reckless in helping Ripple making institutional sales.”
Deaton said the purpose of the suit against Larsen and Garlinghouse was “not to enforce U.S. securities laws, but for ill-conceived motives.”
He also stated that a trial would have meant that Bill Hinman likely would have been called to testify, something the SEC wanted to avoid. In addition, during a trial, other facts could be presented which may affect the SEC’s win on institutional sales of XRP.
In addition, I wonder if the SEC wants to avoid a trial where facts could come out that maybe jeopardize the SEC’s win on institutional sales. https://t.co/RWHi9wdtur
— Elliott Z. Stein (@NYCStein) October 19, 2023
Why Did the SEC Dismiss the Case Now?
Jeremy Hogan, another well-known lawyer, also present in the spaces meeting had an explanation to offer as to why the SEC chose to drop the charges right now.
He assumes that the SEC made an offer for settlement which Garlinghouse would have possibly found laughable. The defendants had a good case, Hogan said, and would have potentially turned down any offer and told the SEC to go to trial.
In Hogan’s view the regulator played its cards wrong and underestimated how weak their case against Ripple including Larsen and Garlinghouse was.
SEC Against Ripple is Far from Over
Bill Morgan, Australian lawyer and long-term commentator of the case, gave a reminder that by dropping charges the SEC can get to an appeal much faster.
As Jeremey Hogan put it in a post, “Settling out the individual Defendants gets the SEC to an appellate court about 9-12 months faster and saves its resources (and face) by bypassing a very difficult and overreaching case. After settlement of the individuals, the case would go straight to “remedies” litigation.”
Recall what @attorneyjeremy1 said. A faster move to an appellate court.
The SEC’s litigation against exchanges benefits from the SEC winning on appeal issues it lost on summary judgment. https://t.co/Cdtm3zj515
— bill morgan (@Belisarius2020) October 19, 2023
XRP Price Up
After the news, the XRP price initially jumped past US 0.50 ($0.79), for the first time in ten days. Market intelligence platform Santiment stated, “the rise can largely be attributed to the ‘smart money’ tiers, holding between 10K to 10 million XRP, accumulating rapidly. They hold 29.5% of the supply.”
#XRPLedger enjoyed its first jump above $0.53 in 10 days despite most #altcoins continuing to decline. The rise can largely be attributed to the ‘smart money’ tiers, holding between 10K to 10M $XRP, accumulating rapidly. They hold 29.5% of the supply. https://t.co/KULxMtMGRL pic.twitter.com/LTzFcrwG3f
— Santiment (@santimentfeed) October 20, 2023
The post Ripple Celebrates 3-Nil Win as SEC Faces Major Setback in Crypto Enforcement Tactics appeared first on Crypto News Australia.
Filed under: Bitcoin - @ October 22, 2023 12:27 am