XRP community member expresses confidence in the executives’ defense and doubts SEC’s ability to prove bad faith
Mr. Huber (@leerzeit), a well-known XRP community member and analyst, recently came to Twitter to predict the outcome of the SEC vs. Ripple litigation. Mr. Huber made the audacious claim that the Securities and Exchange Commission (SEC) would most likely lose its case against Ripple executives Brad Garlinghouse and Chris Larsen.
Mr. Huber’s confidence in his prognosis stems from his idea that former SEC director Marc Fagel would agree with him. “The SEC’s cases against Brad Garlinghouse and Chris Larsen are all but over.” Even @Marc_Fagel is unlikely to disagree,” Mr. Huber stated.
Read Also: Ripple CEO Brad Garlinghouse Officially Releases Video On Hinman Docs, Appreciates XRP Community
Mr. Huber cites the SEC’s failure to show bad faith on the part of Ripple’s leadership as one of the primary grounds for his prediction. The regulatory agency’s inability to offer evidence of bad faith, he claims, damages their case.
The cases against Brad Garlinghouse and Chris Larsen are as good as lost for the SEC. Even @Marc_Fagel is unlikely to disagree with that. The SEC was not be able to prove "bad faith". Ripple will likely pay fines for some securities offerings before ODL-sales and, in the worst… https://t.co/QPenSJCpyW
— Mr. Huber🔥🦅🔥 (@Leerzeit) June 26, 2023
To offer context, the SEC charged Garlinghouse, Larsen, and Ripple in December 2020 with violating federal securities laws by selling XRP without appropriate registration. The SEC claimed that both executives distributed XRP recklessly.
Interestingly, Huber is not the only XRP fan who believes in the executives’ SEC defense. Pro-XRP lawyer John Deaton agrees, claiming that the SEC struggled to determine XRP’s security classification in 2018. Deaton wonders if the executives were foolish in distributing XRP in 2013 if the SEC had difficulty classifying XRP as a security.
Also, Ripple’s Chief Legal Officer, Stuart Alderoty, calls the SEC’s charges against Garlinghouse and Larsen “ridiculous.” To establish its “recklessness” argument, the SEC must demonstrate that the executives deliberately disregarded the law, according to Alderoty.
Mr. Huber predicts that Ripple may be required to pay fines for certain securities offerings prior to their XRP sales connected to On-Demand Liquidity (ODL) in his forecasts for the SEC vs. Ripple lawsuit. He also expects Ripple to be tasked with registering any future XRP sales, a difficult undertaking given the difficulty in distinguishing between utility and investment liquidity.
Furthermore, Mr. Huber believes that when it comes to XRP secondary market sales, Judge Analisa Torres will decide that these transactions are not securities. He adds that the judge may underscore the need of evaluating each transaction on its own merits.
As the crypto world awaits the summary decision in the SEC vs. Ripple litigation, industry analysts like Mr. Huber continue to provide their perspectives, affecting the conversation about the case’s probable conclusion.
Read Also: Ripple CEO Brad Garlinghouse Defends XRP Against Securities Allegations, Slams Critics
XRP Community Remains Optimistic Despite SEC’s Lawsuit
While the legal struggle between Ripple and the SEC continues, members of the XRP community remain positive, focusing on the company’s accomplishments, collaborations, and prospects for greater adoption. Ripple’s dedication to compliance and cooperation with authorities, they feel, improves their position and lays the road for future success.
As the crypto market evolves, the XRP community remains unified and awaits the conclusion of the litigation. Their continuous support and optimism reflect Ripple’s and its ambition for a more inclusive and efficient financial system.
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