Australian Lawyer Gives SEC Slim Chance After It Dropped Charges Against Ripple
The U.S. Securities and Exchange Commission (SEC) and Fintech Ripple have mutually agreed to dismiss their scheduled trial for April 2024. This is a significant victory for Ripple, marking the third favourable decision they’ve received against the SEC. Although this specific trial will not proceed, there are unresolved issues regarding Ripple’s sales to institutional investors and potential SEC challenges on other aspects of the case.
SEC is Likely to Finalise Case, Lawyer Thinks
Lawyer Fred Rispoli stated that upon reviewing the original stipulation, he realised that only the Institutional Sales claim against Ripple CEO Brad Garlinghouse and Chairman Chris Larsens was agreed to be dismissed.
As the judge ruled in Ripple’s favour on programmatic sales and other distributions, the claims against BG & CL for those 2 categories automatically died at that point.
However, Rispoli points out that there’s a possibility these claims could be revived if the SEC appeals and wins on the programmatic sales and other distributions XRP transactions. He believes if the SEC wins the appeal entirely, it won’t be able to sue the executives on the basis of institutional sales in the future since the dismissal is with prejudice.
This means that they can never be sued again based on the Institutional Sales theory. Riz questions whether the specific mention of institutional sales in the dismissal was due to careless drafting, but he believes it’s unlikely. Instead, he thinks it indicates the SEC is likely to conclude this matter soon, referencing Water T’s phrase “crunch the numbers.”
Attorney Jeremy Hogan put the chances of the SEC winning on appeal at 2.367%, stating, “‘for all intents and purposes,’ this case is over.”
SEC Drops Charges
This comes as Judge Torres has just signed the order to officially dismiss the case against the Ripple executives.
Hogan believes that all the facts have been established and that no new revelations will emerge.
Hogan stated that therefore, the court will likely issue a final judgment sometime in the next year. While a settlement before this final judgment is still possible, Hogan also acknowledges the potential for appeals, noting the SEC’s indication to appeal.
Bill Morgan, Australian lawyer and crypto enthusiast, stated that if Rispoli’s assumption is correct, it could indicate that the SEC does not plan to appeal.