- An unexpected turn has just occurred in the ongoing SEC vs Ripple legal saga.
- Legal expert Bill Morgan has recently weighed in on the SEC’s courtroom defeat.
- A web of mistrust and corruption allegations has swirled around cryptocurrency.
All eyes are fixed on the impending resolution of the legal showdown between the United States Securities and Exchange Commission (SEC) and Ripple. The recent court decision, denying the SEC’s plea for an early appeal, has drawn commentary from key figures involved in the case.
Has the SEC Shot Itself in the Foot? Bill Morgan Explains
Bill Morgan, a legal luminary, emphatically asserted that the SEC found itself on the losing side. In a series of posts shared on October 4, he made a compelling argument that the SEC had “lost big” and had inadvertently complicated its own position in future cases against cryptocurrency enterprises. Morgan went on to state:
“The SEC lost big. It lost on all three elements it needed to satisfy the test for certification for an interlocutory appeal,” as “the court found 1. there was no controlling question of the law; 2. there was no substantial ground for differences of opinion (…); 3. an interlocutory appeal would not materially advance the ultimate termination of a complete loss by the SEC on every element. Totally smashed.”
How the SEC Might Be Setting Tough Precedents for Itself
Morgan’s insights hinted at the potential repercussions of this legal setback. He suggested that the SEC’s persistence in categorizing sales and reasonable buyers differently, particularly institutional buyers versus retail buyers through programmatic sales, might inadvertently bolster the precedent set by Judge Torres.
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This could ultimately increase the SEC’s burden of proof in future cases, particularly when targeting crypto exchanges. In simple terms, the SEC might have made things harder for itself.
However, Morgan did not shy away from acknowledging the SEC’s accomplishment in sowing seeds of mistrust and skepticism regarding cryptocurrency among millions of individuals in the United States and around the world. This skepticism, he noted, stemmed from a belief that cryptocurrency had a tinge of corruption.
On the Flipside
- Despite the recent setback for the SEC, the final verdict is yet to be determined, and it’s a case that could potentially set a significant precedent for the cryptocurrency industry.
- The SEC’s persistence in regulating cryptocurrencies might also be viewed as a proactive stance aimed at protecting investors and maintaining market integrity.
Why This Matters
This legal setback for the SEC’s classification of XRP as a security carries substantial implications. It not only challenges the regulatory approach to cryptocurrencies but also highlights the potential for shifting perceptions and increased mistrust surrounding digital assets.
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To learn more about Ripple’s expansion in Singapore following legal wins, read here:
Ripple Capitalizes on Legal Wins to Make Singapore Expansion
To stay updated on the SEC’s motion loss and Ripple’s victory in the XRP case, read here:
SEC Loses Motion to Appeal Ripple’s Victory in XRP Case
