Ripple Vs SEC: Cathie Wood Predicts SEC’s Downfall in the Ongoing Ripple Case

Cathie Wood, CEO of Ark Invest, believes that the Securities Exchange Commission (SEC) is on the verge of losing the case against Ripple. The lawsuit between the SEC and Ripple is highly anticipated to impact the regulatory trajectory of the cryptocurrency markets, especially on securities classification as the SEC continues to plague the industry with securities laws.

Wood made these statements during an interview on a Twitter space in which she was asked about the possibility and timeline of an SEC-approved Bitcoin spot exchange-traded fund (ETF) in the United States. She criticized the commission for being inconsistent in approving Bitcoin ETF products and cited statements from judges in the Grayscale appeal.

Recent Rulings Favor Ripple

Recent rulings in the legal battle between Ripple and the SEC appear to favor the blockchain payments company. Ripple’s Chief Legal Officer, Stuart Alderoty, said that the company grew more confident with each ruling following Judge Analisa Torres’ ruling on Daubert motions.

Pro-Ripple lawyer John Deaton tweeted on March 27, projecting that the judge’s ruling was coming down within the next few weeks or even this week. According to Deaton, if the SEC wins, there might not be much downside for XRP, noting that the token has the most attractive risk/reward ratio.

Ripple’s Win Will Clarify XRP’s Security Status

However, Deaton pointed out that if Ripple wins, it will be made clear that XRP is not a security, and the token will have an upside. Defense lawyer James Filan tweeted on March 23, sharing that the SEC had filed its response to the Ripple defendants’ letters regarding supplemental authority drawn from the Bittner and Voyager cases.

According to the SEC’s response, the defendants contend that the excerpts support their ‘fair notice’ defense, which the regulator disagrees with, and that it does not provide any basis to deny the SEC’s motion for summary judgment. 

Filan explains that while the response negates the Bittner decision, the Voyager judge’s ruling is a good thing for Ripple. There is a growing consensus in the crypto community that the legal debacle is nearing its conclusion. In any case, we’re all waiting to see what the end brings.