It’s been a long time Ripple (XRP) engaged in a major lawsuit with the US Securities and Exchange Commission (SEC)† Regulator Claims Ripple Has Sold XRP As security, or effect, without having the necessary licenses to do so. Ripple vehemently denies this. A former SEC official, attorney Joseph Hall, now states that he expects Ripple to have a good chance of winning the infamous lawsuit.
Ripple vs. SEC
During a podcast from Thinking Crypto with Tony Edwards, Joseph Hall said yesterday that he doesn’t quite understand what the SEC is actually trying to prove. According to him, the SEC is quite wrong with the direction they want to take in the case.
“I’m not quite sure what the SEC intends to prove in the XRP lawsuit.”
The consequences of the outcome of the lawsuit could be enormous, according to Hall. He argues that the crypto sector regulation project could be hit hard if the SEC loses its lawsuit with Ripple. He also states that the chance that this will indeed turn out to be the case is quite high.
According to Hall, it is problematic that the SEC only informed Ripple at the last minute that they were being investigated by the regulator. US law requires the SEC to provide timely notice to the subject of an investigation. This is apparently not done properly in the case of Ripple.
“I am very sympathetic to that argument. It’s a basic ‘due process’ argument. The Ripple network had been active for years before a last minute lawsuit was filed against them.”
End of the XRP lawsuit?
Hall thus seems convinced that Ripple will win the lawsuit, but when will the lawsuit finally end? According to a lawyer from Ripple’s camp, Jeremy Hoganit won’t be long before the chapter finally closes.
April is my best estimate. I very much doubt the Ripple case could be strung past summer even in a worst case scenario.
— Jeremy Hogan (@attorneyjeremy1) December 30, 2021
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