Former SEC Official Expects Regulator ‘will lose on the merits’ In Ripple Lawsuit• February 23, 2022 8:28 pm • Comments
A former executive of the SEC has spoken out and stated that he expects the SEC to lose in the SEC v. Ripple lawsuit “on the merits” of the case.
This former official, Joseph Hall, has also revealed that the SEC does not have the capability to win at this time due to the fact that the SEC probably does not currently have the capabilities to declare cryptocurrencies as securities.
If XRP was actually declared a security, then supposedly that same logic would apply to all the other top cryptocurrencies in the market right now.
Yet, for some reason, only XRP was singled out indicating that there is ‘no merit’ to the SEC’s case against Ripple.
So far, the lawsuit has been delayed for quite an extensive time and is estimated to be a $1.3 billion cost lawsuit so far with no final resolution yet.
SEC Will Lose Lawsuit Against Ripple, Former SEC Official Predicts!
— JackTheRippler ©️ (@RippleXrpie) February 23, 2022
Attorney Joseph Hall has also voiced concerns over what the SEC’s endgame could be regarding the high-stakes case against Ripple, which will have ramifications for the entire industry.
The lawsuit alleges that the company and its co-founders, Brad Garlinghouse and Christian Larsen, failed to notify the SEC about its sale of XRP beginning in 2013 and that the tokens are unregistered securities.
The SEC has been trying to prove that securities fraud took place as a result.
Hall, a former managing executive for policy at the SEC, appeared on the Thinking Crypto podcast with host Tony Edward on Tuesday where he said:
“I’m not entirely sure what the SEC is planning on proving in the XRP litigation.”
Hall also states that there is a lot of risk right now for SEC if they do lose the case which probably explains why they are doing everything they can to delay the case.
Essentially, the SEC’s entire regulatory project would be shut down if they lost this case against XRP.
Additionally, another thing that is positive for Ripple’s defense is the fact that there is pretty strong indication that Ripple was not given fair notice of the SEC’s investigation.
What this means is that the SEC is supposed to notify Ripple that they are being investigated and Ripple was clearly operating for many years already before the SEC decided to reveal the lawsuit against them.
The two reasons are above already provide a strong foundation for Ripple’s defense in the court which will inevitably lead to the SEC’s loss no matter how long this gets delayed.
— CryptoSmind (@SmindCrypto) February 23, 2022
Another lawyer who has been following and commenting on the Ripple case for some time, Jeremy Hogan, also believes that Ripple’s fair notice defense will be strong enough to keep it out of the proverbial fire.
In a Feb. 23 tweet, he cited precedent from the case the SEC filed against Library Credits (LBRY) last March, which was dismissed because the SEC failed to give fair notice.
The Ripple case could have effects that would set the tone for investigations and litigation in cryptocurrency cases for the foreseeable future once a decision is made.
If the SEC wins, it could trigger a deluge of new investigations and lawsuits against crypto projects.
If Ripple wins, it could force the SEC to drastically scale back attempts to sue the crypto industry.
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