Joseph Hall, the former SEC managing executive for policy, has recently predicted that the ongoing lawsuit between the United States Security and Exchange Commission (SEC), and Ripple would end in favor of the San Francisco-based cross-border payment firm.
In a recent podcast with Tony Edward of Thinking Crypto, Hall discussed the status of the case between the SEC and Ripple. He spoke about the progress so far and what to expect going forward.
In the course of the conversation, the former SEC executive said he’s still trying to figure out why the U.S. regulator filed the lawsuit in the first place.
Joseph Hall noted:
“I’m not sure what the SEC intends to prove in the XRP action either.”
Speaking about the implications of the case for the regulator, Hall said “the SEC has a lot riding on the case, and their entire regulatory project could be basically shut down if they lose on the merits of the case.”
He added that “And I continue to think there is a pretty good chance that (the SEC) will lose on the merits.”
Hall believes that the cross-border payment firm has a strong defense on the fact that the SEC failed to give fair notice of its investigation since it’s required of the SEC to inform individuals or organizations under its scrutiny.
Hall added, “I’m very sympathetic to that argument. It’s a basic due process argument. The Ripple network was operating for years before the last-minute filing of a lawsuit against them.”
He pointed out that Ripple Labs has been in operation for years before the SEC deemed it necessary to file a lawsuit.
According to Hall, the lawsuit will likely not end up in the manner expected by the SEC. He said there could be a big question from the judge for SEC to answer:
“If you are aware that XRP is a concern and have knowledge of it since 2012, why now?”
It can be recalled that Attorney Jeremy Hogan also highlighted the big blunder made recently by the SEC in relation to its lawsuit against Ripple Labs.
According to Hogan, the SEC made a big blunder for saying Hinman’s comments about Ethereum could be relied upon as guidance. He said this implies that the regulator is backtracking its previous argument on the fact that Hinman’s comments were his personal opinion. This, he said may end in favor of Ripple.
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