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Lawyers Project Ripple to Emerge as Winners Over The SEC in Future Appeals

David Pokima
Last updated: | 2 min read
Source: AdobeStock / photo_gonzo

Pro-digital asset lawyers have projected a victory for Ripple (XRP) in any appeal by the Securities and Exchange Commission (SEC) in the case of alleged unregistered securities offering.

In a social media post on X (Twitter), Jeremy Hogan, a pro-XRP attorney who closely followed the lawsuit addressed certain issues about the appeal stating that “for all intents and purposes, the Ripple and SEC is over.” 

He based his analysis on the fact that the regulator dismissed the rest of the case to the effect that there would be no trial next year as no new surprises would be presented.

Which means the Court will be issuing a Final Judgment (probably) sometime next year.  Only Ripple needs to worry about that,” he added. 

On the chance of the Commission winning a likely appeal, he shared a percentage of reversed appeals by the United States courts between 2011 and 2015 concluding that there is only a 14.2% chance of a change in the verdict.

Bill Morgan offers low probabilities for the SEC 

Similarly, another lawyer Bill Morgan reacting to the analysis and statistics by Hogan noted that to him, there is no appealable error in favour of the SEC

On the other hand, Ripple stands to gain because the ODL sales do not meet at least two requirements of the Howey Test adding that the finance regulator has a 3% chance of appeal against the ruling. 

Hogan also added that the case might proceed with a settlement before final judgment is made but in all probability, it would be decided in Ripple’s favour.

The SEC has continued in search of victories over its tough stance on the digital asset market after it viewed most cryptocurrencies as securities, a move that sprung several lawsuits against the market.

The SEC takes losses from all corners 

The Commission instituted legal action against Ripple Labs alongside two executives, its CEO Brad Garlinghouse and Executive Chair Chris Larsen in December 2020 and the events afterward have been described as a “tough three-year litigation period.” 

The courts have a ruling that effectively marked a partial victory for Ripple regarding its sale of XRP to retail investors. The price of XRP surged on the back of the ruling after years of decline.

This month New York district judge Analisa Torres ruled against the Commission denying a motion to appeal the previous decision stating that the SEC failed to show grounds for a different opinion. 

In another development, Grayscale notched a win over the SEC to look into its spot Bitcoin (BTC) ETF application after the regulator rejected the subject matter citing market manipulation concerns.

Last week, the SEC dropped charges filed against Ripple’s executives Garlinghouse and Larsen with many within the community describing it as a major victory and a total surrender by the SEC.