Attorney Jeremy Hogan, a well-known figure in the crypto legal space, has criticized the U.S. Securities and Exchange Commission’s (SEC) decision to appeal part of its recent loss against Ripple.
The SEC recently filed Form C for its appeal against Ripple, and Hogan’s criticism was direct, calling the SEC’s move a “chicken” decision.
He explains that the SEC’s appeal only targets specific rulings, specifically Ripple’s programmatic sales of XRP on exchanges and its use of the token for payments. Notably, the agency did not appeal the ruling that XRP itself is not a security, a victory Ripple has already secured.
Hogan’s Opinions on the SEC Actions
Hogan referred to the SEC’s strategy as an opportunity to gain more money but achieve little. His frustration lies in the fact that the SEC could have presented its case against Ripple’s executives, Brad Garlinghouse and Chris Larsen, in front of a jury rather than attempting to revive those claims now.
The SEC initially sued Garlinghouse and Larsen for aiding and abetting unregistered securities sales, but dropped all charges against the executives in late 2023, marking another notable victory for Ripple. Hogan likened the revival of the charges to a retreat, suggesting it was done to avoid a full trial in front of the public, which he termed “a chicken move.”
Hogan also explained de novo, emphasizing that the appellate court will review the legal questions without deferring to the lower court’s decision. This means the SEC is challenging the interpretation of laws rather than factual findings.
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The SEC’s appeal has broader implications, with Hogan warning that it could backfire. While a win for the SEC might result in financial penalties for Ripple, Hogan argued it would not protect investors, which is the SEC’s primary mission. Ripple’s cross-appeal could also curtail the SEC’s authority to push the security label on cryptocurrencies.
Beyond Hogan, Ripple’s CEO Brad Garlinghouse voiced his frustration, stating that the SEC’s actions are doing more harm than good. According to Garlinghouse, the agency should have let go of the case after its initial defeat. However, the company is committed to fighting the SEC, and a victory in the appeal would solidify XRP’s position as a leader in crypto regulation in the U.S.
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