Analyzing Remaining Aspects of the Ripple vs. SEC Legal Battle from a Legal Expert’s Point of View
In a recent development, the federal court overseen by Judge Analisa Torres delivered a setback to the SEC by rejecting its request for an interlocutory appeal in the ongoing case involving Ripple. The court reaffirmed its earlier ruling made in mid-July, in which XRP was not classified as a security, but Ripple was handed a substantial $700 million penalty for conducting unregistered securities sales to institutional entities. The trial is slated to resume on April 23, 2024.
Retired attorney Marc Fagel, a former SEC regional director, provided insights into the SEC’s potential future actions. According to Fagel, the SEC must address the individual case against Ripple, whether through trial, settlement, or dismissal. Additionally, the SEC needs to determine the appropriate remedies for Ripple’s illicit securities offering, either through negotiation for a settlement or a legal hearing.
I'm not carrying water for anyone; I disagree with a lot of how they've handled the crypto space. But there are also places where they are 100% correct, like suing a company that illegally raised over $700M in violation of the securities laws.
— Marc Fagel (@Marc_Fagel) October 4, 2023
When asked about the potential settlement figure for the $700 million violations, Fagel acknowledged the unique nature of the case, making it challenging to provide a precise estimate. He also expressed criticism of the SEC’s approach, particularly its inclusion of Ripple’s top executives, Brad Garlinghouse and Chris Larsen, in the initial complaint. Fagel argued that pursuing individual cases against them appeared to be a futile endeavor, given the low likelihood of success.
The SEC’s handling of the case has sparked discussions regarding its implications for retail investors. Fagel, while recognizing the regulator’s missteps in the cryptocurrency realm, defended its actions against Ripple. He emphasized the importance of holding a company accountable for raising over $700 million unlawfully, underscoring the SEC’s responsibility to uphold securities laws.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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