As a seasoned researcher with years of experience following legal battles within the crypto-sphere, I find myself captivated by the ongoing saga between Ripple and the SEC. Stuart Alderoty’s latest musings on the case remind me of the intricate plotlines in classic literature, where the line between justice and obsession becomes blurred.
In simple terms, Stuart Alderoty, Ripple‘s top legal advisor, discusses various possible outcomes from the ongoing court battle between Ripple and the United States Securities and Exchange Commission (SEC).
In a recent post, Alderoty anticipates that the U.S. Second Circuit Court of Appeals will either uphold Judge Analisa Torres’s decision or extend her ruling. He expresses doubt that the SEC has a significant chance of getting the case remanded, describing it as a slim possibility at most.
In his recent post, Alderoty stated that the 2nd Circuit Court of Appeals might either uphold Judge Torres’ decision or broaden its scope. Under the best-case scenario for the SEC (but it’s a slim possibility), they may only be granted a remand.
In simpler terms, the Head Legal Advisor of Ripple explained that in response to the SEC’s unsuccessful attempt to appeal mid-trial, Judge Torres reaffirmed her original decision, which encompasses all of Ripple’s defense strategies and the substantial claim they received fair warning about the regulatory status.
The Second Circuit Court of Appeals may either uphold Judge Torres’ decision or extend its scope. The Securities and Exchange Commission (SEC) can only anticipate a slim chance of this outcome, which is a remand back to the lower court.
— Stuart Alderoty (@s_alderoty) October 20, 2024
The Fair Notice argument poses the question whether a person of “ordinary intelligence” could have understood what was prohibited by law. If the case were to be remanded, this defense, along with other arguments can be brought back into court.
As a researcher, I find it intriguing to note that this scenario suggests the possibility of the SEC having to contest Judge Torres’ intellectual capacity, as she has ruled against their favor. This could potentially lead to a somewhat awkward predicament, as described by Alderoty.
In a subsequent analogy, he likened the situation to Herman Melville’s novel Moby Dick, positioning SEC Head Gary Gensler as Captain Ahab, who is driven by an unyielding desire to capture the elusive whale Moby Dick, having lost his leg in their previous encounter. However, this time around, he suggested that the current scenario mirrors the courtroom comedy My Cousin Vinny.
Last week, Alderoty clarified via a different social media post that the Securities and Exchange Commission (SEC) has chosen not to challenge the court’s decision classifying XRP as non-security. Earlier, the SEC submitted a Form C civil appeal, requesting the court to reconsider the legal interpretation made in an earlier summary judgment.
In this case, the SEC asked the court to reconsider the decision to sell XRP tokens on exchanges, as well as personal sales of the token by Ripple CEO Brad Garlinghouse and co-founder Chris Larsen. In an interview with Fox Business, Alderoty stated the case could go on until July 2025. On Oct. 10, Ripple filed its own cross-appeal to challenge the ruling on institutional sales.
The legal proceedings against Ripple Labs started in December 2020, when the Security and Exchange Commission (SEC) brought a lawsuit against them. They claimed that Ripple Labs had illegally sold XRP tokens valued at approximately $1.3 billion, which SEC considered as unregistered securities. Additionally, the SEC asserted that the sale of XRP established investor expectations for profit, thus falling under the definition of a security.
Read More
Sorry. No data so far.
2024-10-22 12:06