Fred Rispoli, a pro-XRP lawyer has provided insights into the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC). Rispoli’s analysis suggests that the highly anticipated trial involving Ripple executives Brad Garlinghouse and Chris Larsen may never come to fruition.
Rispoli asserts that the SEC’s initial decision to sue the two Ripple executives was primarily a tactical move. He suggests that the lawsuit aimed to exert pressure on Ripple, forcing them into a weakened settlement position. This implies that the SEC’s motives may have been more manipulative than driven by a genuine pursuit of justice.
#XRPCommunity
Seeing many out there speculate the @bgarlinghouse @chrislarsensf trial won't happen. For many reasons, I agree. First, it's painfully obvious that suing those two initially was only to pressure @Ripple into a weak settlement position. Two, imagine Hinman…1/5— Fred Rispoli (@freddyriz) August 24, 2023
Read Also: Expert Predicts Judge Will Deem XRP a Non-Security. Here are His Reasons
Potential Spectacle of SEC Officials Testifying
As Rispoli delves deeper, he highlights the potential spectacle that would arise from bringing former SEC officials William Hinman and Jay Clayton to the witness stand. The exposure of questionable practices and possible corruption within the SEC, as revealed in the Hinman documents, contrasts with Clayton’s likely interest in self-protection.
Rispoli amusingly speculates the impact of tying Hinman and Clayton to their roles in the “Trump Administration” in a New York City courtroom.
The lawyer also points out the inherent challenges the SEC faces in proving its case. The SEC’s task of demonstrating recklessness in institutional sales becomes significantly more challenging when Ripple can counter-argue by highlighting the legitimacy of programmatic sales. Additionally, Rispoli questions the SEC’s weak distinction between domestic and international sales, suggesting that their evidence in this regard may not hold up in court.
Rispoli further highlights internal shifts in the SEC’s trial team, which can signal a lack of preparedness and confidence. Additionally, the SEC’s busy trial schedule may strain its resources, making it less likely for adequate preparation for a high-stakes trial against Ripple. These setbacks raise questions about how the SEC will navigate a potential loss.
Read Also: Based on Judge Torres Ruling Pattern, Top Lawyer Predicts New End-Date for XRP Lawsuit
Key Questions from the XRP Community
Rispoli’s Twitter thread generated inquiries from the XRP community, seeking further elucidation on the unfolding legal drama. When asked about the timeline for the interlocutory appeal decision, Rispoli indicates that similar appeals have typically taken Judge Torres four to six weeks, providing a useful estimated range.
Another query regarding the possibility of the SEC dropping parts of the case. Rispoli clarifies the procedural requirements, highlighting the need for the SEC to seek permission from the court. He comments that dropping the claim outright would be a humbling move for the SEC.
Regarding potential financial penalties for Ripple, Rispoli acknowledges the complexity of the issue and the ongoing litigation involved in the remedies phase of the case. While a figure of over $700 million is mentioned, the exact outcome remains uncertain.
When asked about what could happen next if Judge Torres denies the SEC’s interlocutory appeal, Rispoli said, “Similar to when J. Torres denied the SEC reconsideration motion of ordering Hinman emails produced. SEC did not file a desperation request to 2nd Cir in that situation. Would it file one here (called a writ)? I would say 80% chance it would not make that attempt.”
Follow us on Twitter, Facebook, Telegram, and Google News
