In a significant development for the cryptocurrency industry, Ripple has strengthened its legal defense against the U.S. Securities and Exchange Commission (SEC) through strategic personnel changes and new legal filings.
Recent court documents reveal substantial changes in Ripple’s legal representation strategy. The company’s Executive Chairman Chris Larsen has transitioned to new counsel following the departure of Paul, Weiss, Rifkind, Wharton & Garrison.
This adjustment came after the appeal court notified Larsen of a missing appearance notice. In response, Larsen has secured representation from the same legal team that previously achieved success in dismissing charges against himself and Ripple CEO Brad Garlinghouse.
The enhanced legal team now includes Cleary Gottlieb partner Matthew Solomon and cryptocurrency prominent attorney John Deaton who is currently running against Sen. Elizabeth Warren for a seat in the U.S. Senate. Both attorneys have joined as non-admitted counsel, suggesting a focused and strategic role in the proceedings.
The SEC has filed to appeal parts of Judge Torres’ rulings and has reintroduced its charges against Garlinghouse and Larsen which it previously dropped.
Ripple’s cross-appeal introduced several critical questions regarding cryptocurrency regulation. The company challenges fundamental aspects of securities classification, including whether an “investment contract” requires formal documentation and the relationship between profit generation and seller activities.
Additionally, Ripple has reintroduced its “fair notice” defense, contending that the SEC failed to warn about XRP’s potential classification as a security.
The legal proceedings have entered an extended phase, with the SEC requesting a January 15, 2025 deadline for its principal appeal brief. Former SEC attorney Marc Fagel has provided context, noting that while certain aiding and abetting charges related to institutional sales have been dismissed, other allegations against Ripple executives remain active.
Jeremy Hogan, another well-respected attorney in the crypto world, called the SEC’s revival of charges against Larsen and Garlinghouse a chicken move, mirroring the sentiment of many members of the community, who believed the executives were free after the SEC initially dropped those charges in 2023.
The legal battle has intensified, and getting the SEC to drop the charges against Ripple’s executives again would be a significant victory. However, the outcome of this lawsuit and crypto regulation in the U.S. now lies in the hands of the appeals court.
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. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
Follow us on Twitter, Facebook, Telegram, and Google News
An emerging cryptocurrency priced under half a cent is capturing investor attention with its promise…
New wave of digital assets is capturing attention for their potential to reshape the market…
The cryptocurrency market has recently resurged, with key assets reaching impressive highs. Amid the market-wide…
The sudden departure of SEC Chair Gary Gensler has sent shockwaves through the crypto world,…
XRP is receiving renewed interest from the cryptocurrency community fueled by the conducive political atmosphere…
XRP’s price trajectory has become a significant focus for cryptocurrency analysts and traders alike, particularly…