A lawyer following the long-running battle says the SEC has virtually no chance of winning
The US Securities and Exchange Commission (SEC) recently dismissed its charges against CEO Brad Garlinghouse and executive chair Chris Larsen of cryptocurrency company Ripple, while the regulator also received an unfavorable ruling on the retail sale of XRP. Now, lawyer Bill Morgan, who has been closely monitoring the lawsuit against Ripple, says the SEC has a slim chance of winning its appeal in the ongoing case.
In a post on X (formerly Twitter), he asserted that there is no apparent appellable error besides in “Ripple’s favour regarding ODL sales which don’t meet at least two prongs of the Howey test,” adding that the SEC’s chance for success in winning an appeal against Ripple is about 3%.
I don’t see any obvious appellable error other than in Ripple’s favor in respect of ODL sales which don’t meet at least two prongs of the Howey test. The SEC’s prospects of success on appeal are very slim and I feel generous today so I am giving it 3% chance of success on appeal https://t.co/FRIFbqzmVA
— bill morgan (@Belisarius2020) October 22, 2023
Government data on the success rate of appeals in various lawsuits was shared by another prominent attorney, Jeremy Hogan, which showed the SEC’s chance of winning the appeal against Ripple is 14.2%.
The SEC’s court case against Ripple went on for three years before a judge ruled that sales of XRP on crypto exchanges did not violate US securities law. The ruling was a significant victory for Ripple, which lost considerable revenue during the lawsuit after major crypto exchanges removed XRP from their platforms.
However, the SEC dropped all charges against Ripple CEO Brad Garlinghouse and executive chair Chris Larsen on October 19, another huge victory for Ripple and company executives. Stuart Alderoty, RIpple’s chief legal officer, dubbed the SEC’s action “a surrender,” while Ripple said in an official statement that the SEC’s shift was a “stunning capitulation.”
Morgan commented that the remainder of the case has been dismissed by the SEC, so no trial will take place in 2024. He forecasted that the court may hand down a “final judgment (probably) sometime next year.”
Emma Rodriguez is the Proofreader at the Big Blind, with seven years of experience and five years in online gambling. She plays a crucial role in maintaining content quality by ensuring error-free, reader-friendly information about the gambling industry.
