The cryptocurrency community is on edge as the legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) nears its endpoint. However, recent comments from former SEC chairman Jay Clayton suggest the final verdict may not be the end of the road.
During an interview with crypto commentator Henri Arslanian on The Future of Money podcast, Clayton, who oversaw the case during his tenure, addressed the possibility of both parties appealing Judge Analisa Torres’s decision.
Legal expert Bill Morgan, a pro-crypto lawyer and vocal supporter of XRP in the lawsuit, highlighted Clayton’s remarks on X, emphasizing the potential impact of the former chairman’s insights due to his presumed ongoing connections within the SEC.
What I take from Clayton’s comments is that he expects both sides and certainly the SEC will appeal the Torres decision. I am sure he still has close contacts at the SEC. https://t.co/smx2QKfqlG
— bill morgan (@Belisarius2020) February 4, 2024
More Appeals Ripple and SEC?
Clayton expects the protracted legal battle to extend beyond the initial verdict. He points to the inherent ambiguity surrounding what constitutes a security transaction, particularly in the context of Ripple’s XRP token sales and subsequent secondary trading.
Although Bill Morgan has shared his belief that XRP’s non-security status has been determined, there are pending issues in the lawsuit and questions that need resolution.
Clayton explained that the court essentially ruled that Ripple’s initial capital raising transaction was a securities offering, subject to stricter regulations. However, it concluded that secondary trading activities fell outside this definition. He believes that both sides appealing this distinction seems likely.
Clayton further emphasizes the SEC’s commitment to regulating capital-raising activities rigorously. This statement comes amid ongoing discussions within the crypto space regarding fundraising practices. Recently, a prominent XRP proponent Digital Asset Investor (@digitalassetbuy) drew attention to a video featuring Ethereum founder Vitalik Buterin discussing fundraising.
Digital Asset Investor stated, “Here’s Valerie from the SEC. She’s at the end after you watch Vitalik describe his illegal security offering(ICO),” highlighting the perceived double standard of the regulatory body.
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While the legal battle continues, XRP is still struggling, after facing recent setbacks. XRP recently lost its #6 position to USDC and fell below $0.5. Although it has recovered, its performance doesn’t inspire confidence as it is down 11.65% over the last month.
However, XRP is trading at $0.506, up 1.27% over the last 24 hours. This brief surge has restored the faith of some. If XRP can keep this momentum, it could begin a major resurgence and meet the bullish expectations set by prominent market analysts.