The U.S. Securities and Exchange Commission (SEC) might be in for a prolonged battle ahead as it finds itself tangled in a complex suit against Ripple (XRP) in the court, as per legal expert Jeremy Hogan.
Hogan also believes that despite the SEC’s efforts, a through and through “glorious victory” might not be in sight for the federal agency in the ongoing trial.
Jeremy Hogan, a prominent pro-XRP attorney, recently voiced his skepticism on social media. He argues that even if the SEC wins the appeal, the case could be sent back to the lower court for further examination, potentially prolonging the legal battle.
The controversy stems from Judge Analisa Torres’ split ruling in July 2023, which declared XRP tokens not securities in retail sales but found Ripple in violation when dealing with institutional investors. This decision has left both parties claiming a partial victory while blurring the lines of cryptocurrency regulation.
Adding to the uncertainty, former SEC official Kristina Littman hinted in May 2024 that the SEC might not pursue the case further. This stance contrasts with other recent court decisions, including Judge Jed Rakoff’s ruling in the Terraform Labs case, which rejected similar arguments.
As Ripple fights to reduce potential fines, estimated to reach $2 billion, Hogan argues that such hefty penalties could force Ripple to sell large amounts of XRP, potentially harming investors, which are the very group the SEC aims to protect.
Also Read: Ripple’s CLO Stuart Alderoty Questions SEC ConsenSys Decision
