The legal battle between the SEC and Ripple Labs nears its conclusion as the crypto industry anticipates the court’s final decision. Industry leaders, including Ripple CEO Brad Garlinghouse, expect a verdict by the summer of 2024.
However, a crucial question remains: will the SEC challenge the initial ruling, which partially favored Ripple and XRP in July 2023?
Former SEC Official Weighs In on Appeal
Kristina Littman, who previously led the SEC’s Enforcement Division’s Cyber Unit, recently offered insights on a potential appeal.
During a conference titled “Digital Assets and Cryptocurrency – Regulation and Enforcement of Exchanges, Crypto Lending, DeFi, NFTs and More,” she discussed the possibility of the SEC accepting the initial ruling.
Littman suggested the SEC might forgo appealing the verdict that deemed Ripple’s XRP sales not to be securities offerings. This decision could be strategic, as an appeal carries the risk of establishing an unfavorable legal precedent at the Second Circuit Court of Appeals if unsuccessful.
In her words, “There are some speculations that the SEC might just let the Ripple opinion stay there as a district court opinion and not risk elevating it to a circuit level where they could potentially elicit bad law when they have favorable rulings in the aftermath of their obligations.”
She highlighted a recent case (SEC v. TerraForm Labs) where the presiding judge rejected the arguments presented by Ripple. Additionally, Coinbase, another prominent crypto company embroiled in an SEC legal battle, distanced itself from the Ripple verdict and instead aligned its defense with the TerraForm Labs case.
These developments suggest that the SEC might be hesitant to appeal the Ripple case and potentially set an undesirable legal precedent within the Second Circuit. XRP community member wEeZiE expressed a stronger stance, interpreting Littman’s comments as confirmation that the SEC will likely not appeal.
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SEC’s Initial Appeal Attempt Denied
It’s important to note that the SEC’s initial attempt to expedite the appeals process by challenging the ruling on programmatic sales was denied by the court. The judge directed the SEC to wait for the final judgment before filing an appeal.
With leading legal minds and Ripple executives anticipating the final verdict this year, the key question remains: will the SEC choose to accept the initial ruling or pursue an appeal that could establish an influential legal precedent within the Second Circuit?
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Times Tabloid is not responsible for any financial losses.
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