A crypto legal expert says the US Securities and Exchange Commission’s (SEC) decision to appeal a ruling in the Ripple Labs lawsuit is a big mistake.
The SEC first sued Ripple Labs in December 2020, alleging the company sold the crypto asset XRP as an unregistered security.
In October 2023, a judge ruled that only sales of XRP at the institutional level qualify as sales of securities, leaving retail sales unclear. But last week, the SEC announced it would appeal the decision, prompting Ripple’s lead attorney, Stuart Alderoty, to proclaim that the SEC is only prolonging its years-long war against the crypto-asset industry.
In a new thread on the social media platform
“Big mistake by the SEC. It will appeal the programmatic sale ruling and IF it wins, it will get more money from Ripple and won’t have protected anyone.
Ripple will bring up its ‘Blue Sky’ law issue and if it wins, the SEC’s ability to regulate the entire crypto space will essentially be destroyed. Not a good risk calculation by the SEC (it would make a bad stock trader).”
Blue Sky laws are intended to protect the general public from fraudulent sales of securities by requiring companies to register their offerings unless exemptions are available.
Hogan goes on to say that the odds are not in the SEC’s favor.
“The SEC will very likely lose, both statistically and based on the fact-based manner in which the judge wrote her opinion. Even IF the SEC were to ‘win’ on appeal, it is most likely just a matter of money – nothing would change about XRP and Ripple’s use of it.”
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