- As per the legal advisors of crypto, in the continuing battle of SEC and Ripple, the Securities Exchange Commission can face a displeasing defeat.
- The judgement against that authority will possibly restrict its power to look after the law of the crypto asset sector.
- If the verdict goes the same as anticipated, then it will be a great victory for the industry and a revolution in the United States.
The analysis
The senior analyst at Forbes, Roslyn Layton analyzed that,“ If this is the way it is going to end, then it was a self-induced tragedy from the beginning.”
The battle between both the authorities took place as the SEC accused in December 2020 that Ripple had generated more than $1.3 billion illegally. The acquisition also includes two prominent officials of Ripple i.e Christian Larsen, the co-founder of Ripple and Bradley Garlinghouse, the Chief executive officer of Ripple. The SEC quoted that both the officials made a lot of profit in the process.
In October 2022, the CEO of Ripple referred to the hesitation by the SEC to give up the main documents as “shameful.”
The company and its token holders have been struggling for about two years, and their case is building up. Moreover, more than 75,000 XRP investors are associated with the cause filing amicus briefs supporting Ripple.
According to Layton, the securities exchange commission has had no associates, not even its own expert sees who broke up giving bullets to the defense.
In line with Attorney Jeremy Hogan, it is only possible that the SEC wins if Judge Torres, who is looking after this matter, forgets everything about her first year in her law school. Several famous legal advisors and experts also admit that Ripple is on its way to succeed.
The Howey Test
Verret believes that the SEC may go to the Supreme Court to make an appeal. And, this step can entirely reverse or terminate the use of the Howey Test to label cryptocurrencies. Howey Test is used by SEC Chair Gary Gensler to declare that crypto assets are securities.
Ripple has so far decided to settle and give the fine if the SEC proves that XRP is not a security. Although, it looks like Gensler and co. are serious about battling even if it is a losing fight.
If Ripple wins, then it will create a history and also restrict the SEC in marking cryptocurrencies as securities wrongly and constraining it forcefully.
Source: https://www.thecoinrepublic.com/2022/11/01/sec-may-lose-against-ripple-legal-experts/