|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cryptocurrency News Articles
Ripple (XRP) Insiders Probably Don't Know if the SEC Will Appeal the Lawsuit, Says Former SEC Lawyer
Sep 29, 2024 at 01:09 pm
The ongoing legal battle between Ripple and the United States Securities and Exchange Commission (SEC) is heating up once again.
The United States Securities and Exchange Commission (SEC) is reportedly preparing to appeal a summary judgment made by Judge Analisa Torres in the ongoing lawsuit against Ripple Labs, legal sources have told Law360.
The SEC filed a lawsuit against Ripple in December 2020, alleging that the company had raised over $1.3 billion through an unregistered offering of XRP tokens. Judge Torres granted summary judgment to Ripple in December 2022, ruling that the SEC had failed to show that XRP is a security.
The SEC's decision to appeal the summary judgment is not surprising, given the high stakes involved in the case. If the SEC is successful in overturning the summary judgment, it could have a significant impact on the cryptocurrency industry.
However, legal experts are divided on the SEC's chances of success. Some argue that the Second Circuit is likely to uphold Judge Torres' ruling, while others believe that the SEC has a strong case.
John Deaton, an attorney who represents 75,000 XRP holders in the case, told Law360 that he believes the SEC is dissatisfied with the court's decision regarding XRP sales.
"The court found that the SEC failed to show that buyers had any contact with Ripple's promotional materials or saw XRP as an investment opportunity tied to Ripple," Deaton said. "Since buyers didn't know who they were buying from, it made the SEC's burden of proof even bigger, especially since key expert testimony was excluded."
Deaton added that many people have asked him if XRP insiders know whether the SEC will appeal the lawsuit.
"I get asked this question a lot, but the answer is no," Deaton said. "When asked if the SEC needs to vote on the decision to appeal, Marc [Fagel], a former SEC lawyer, explained, 'I believe they do. Which helps explain why it's taking so long; that's never a quick process.'"
One user asked Marc how the SEC could argue that Judge Torres' ruling was wrong when the SEC failed to prove that buyers had any contact with Ripple's promotional materials or saw XRP as an investment opportunity tied to Ripple. The user pointed out that since buyers didn't know who they were buying from, it made the SEC's burden of proof even bigger, especially since key expert testimony was excluded.
Marc agreed, saying that the court's logic suggests a reasonable investor wouldn't care about Ripple's involvement, which undermines the case.
"Under the court's logic, a reasonable investor should not care at all, because a reasonable investor doesn't know that XRP's value has anything to do with Ripple," Marc wrote. "(Or, less kindly, the court seems to think crypto investors are dumb.)"
He added that the decision goes against the intent of the 1933 Securities Act, as it implies companies could avoid registration by selling through third parties.
"Finally, the court's decision seems to protect institutional investors while leaving retail investors without safeguards—a contradiction I expect the Second Circuit to consider," Marc said.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
-
- Cardano (ADA) Price Analysis: TD Sequential Indicator Flashes Sell Signal, Suggesting Upcoming Correction
- Sep 29, 2024 at 08:30 pm
- ADA has exploited the cryptocurrency market rebound following Fed rate cuts last week. Since hitting a local low of $0.303 earlier this month, ADA has maintained an upward momentum.
-
- Lunex Network (LNEX) Emerges as a New DeFi Competitor as Tron (TRX) and Ethereum (ETH) Battle for Dominance
- Sep 29, 2024 at 08:25 pm
- With its unique cross-chain feature, Lunex Network is set to change the status quo of the crypto exchange market. Experts project that Lunex Network could quietly rise to prominence while Ethereum and Tron battle for dominance in the DeFi market.
-
- IntelMarkets (INTL): The Next Big Thing in Crypto, Positioned to Dwarf Ethereum (ETH) and Cardano (ADA)
- Sep 29, 2024 at 08:20 pm
- Positioning for huge gains in crypto can be as easy as finding cheap and solid altcoins in their early stages. Most times, these boxes aren’t completely checked. However, IntelMarkets (INTL), a new player at the intersection of AI and DeFi, has been hailed as the next breakout star.