Pro-XRP Lawyer Rips SEC’s Appeal, Expects Ripple to Win Big
The U.S. Securities and Exchange Commission (SEC) has filed an appeal in its ongoing case against Ripple, challenging a July 2023 court ruling that partially dismissed some claims. Lawyer Jeremy Hogan discusses appeal, explained that the SEC was only appealing a specific ruling: XRP sold on exchanges to retail investors was not considered a security. The SEC did not dispute its finding that no investors were harmed.
Weaknesses in the SEC Profile
Hogan called the SEC’s brief weak and said much of it merely repeated rulings that lower courts had already made. The SEC asked the appeals court to rule that it does not need to prove that XRP buyers were aware of Ripple’s efforts to increase the price of XRP. In support of this, the SEC cited three past cases, but Hogan argued that these cases did not really support the SEC’s position.
Ripple may challenge SEC arguments
Hogan expects Ripple will strongly challenge the SEC’s arguments in its response. The SEC’s best supporting case is the Aqua-Sonic case, but Hogan said the SEC had to piece together statements from different parts of the case to make it work, and even then, it didn’t quite fit in with Ripple’s case.
Evidence of a missed opportunity for the SEC
Hogan was also surprised that the SEC did not address evidence of XRP buyers who were unaware of Ripple’s actions, especially considering the thousands of affidavits filed by attorney John Deaton. The SEC’s failure to rebut this evidence could hurt their case in the long run.
The possible impact of an appeal
If the appeal proceeds and the court upholds the ruling on retail sales, it could cause difficulties for the SEC. They would have to prove that buyers were aware of Ripple’s promotions, which would be challenging and time-consuming. Furthermore, this appeal could allow Ripple to raise new arguments on what constitutes an “investment contract,” potentially strengthening its position.
