- As we are nearing the end of the lawsuit between SEC vs Ripple, pro-ripple enthusiasts are optimistic that they will get a favorable ruling on XRP lawsuit.
- The fintech company has garnered massive support from the crypto industry, with some of the notable legal professionals alsp lending support to the company in the legal dispute.
The lawsuit was initiated by the US Securities and Exchange who alleged that the Fintech firm Ripple sold XRP, a cryptocurrency which was created in 2012, to the SEC without registering it as a security.
However, Ripple claims that the token is not an investment contract. In fact, it is used to accelerate cross-border transactions between banking sectors and other financial institutions.
The final conclusion of the lawsuit could be a turning point for the crypto market as it will determine whether tokens should be considered as securities or not.
As the legal battle rages on, pro-ripple lawyers believe that the court proceedings are nearing its end and the verdict might favor the Ripple.
With new developments in the lawsuit, the company has been mustering massive support from the crypto industry.
The CEO of Ripple, Brad Garlinghouse, proudly expressed his thoughts via Twitter that the total number of firms and investors supporting the company has reached 12.
While we await the conclusion of the lawsuit, let’s take a look at some of the top pro-ripple attorneys who think XRP is not a security.
One of the top pro-ripple attorneys who has been involved in the SEC vs Ripple lawsuit for a long time explained why XRP cannot be termed as a security.
The Crypto Law founder claimed that XRP remains as a digital code regardless of the debate whether Ripple sold it as an investment contract in the past or even now selling it as an investment contract.
In his detailed thread shared via Twitter, the lawyer asserted that even if Bitcoin was sold as a security by someone in the past doesn’t make it a security. Furthermore, the lawyer also noted that during the LBRY Credits lawsuit, the judge had determined that LBRY traded LBC as an investment contract even though it was directly sold. However, this doesn’t alter the fact that LBC is a software code. At that point, SEC confessed LBC tokens were not registered as a security during its sale in the secondary market.
In the same way, similar rulings should apply to the Ripple’s XRP.
Another notable lawyer who has made some interesting observations and claims in support of Ripple has to be Scott Chamberlain.
The lawyer thinks that the SEC has solid evidence to support its claim that they made sales of XRPs as an unregistered security.
He also believes that the SEC has underestimated that most of Ripple’s transactions happened on international exchanges via algorithmic trading. Once overseas and secondary market transactions are removed, there’s inadequate “meat left on the bone.”
Crypt enthusiast and lawyer Bill Morgan’s tweets have also come into the limelight following the lawsuit. The legal professionals raised some valid questions regarding the basis of the Ripple lawsuit.
The lawyer makes some interesting observations regarding the SEC’s frequent change of position and inconsistencies during the SEC’s Daubert attack on Ripple.
He also used several examples and noted that the first expert opinion on the relevance of Ripple’s cross-border remittance product accused ODL of not being an authentic use case for XRP and also objected to the company’s usage of the technology.
Morgan also outlined how $XRP prices could surge upward if the U.S. Securities and Exchange Commission’s (SEC) loses the lawsuit against Ripple and there is a “positive outcome” ahead for Ripple.
Another XRP-friendly lawyer Fred Rispoli in his recent tweets shared his in-depth analysis of SEC vs Ripple lawsuit.
The attorney thinks that Judge Torres will conclude that SEC has not provided any substantial evidence regarding the secondary sales of XRP as securities.
He also added that he doesn’t think that the judge will rule that such secondary sales are never securities as this kind of ruling might further put the burden on the shoulders of the SEC to individually attack every secondary sale.
He also shares the same opinion as Lawyer Deanton and thinks that the lawsuit is soon to get a closure following the recent ruling of Judge Torres.
Mary Jo White
Legal Giant, Mary Jo White who has served as a former chair of SEC has also come to publicly defend Ripple in its XRP lawsuit.
In her recent interview, the high-profile attorney asserted that it was a grave mistake on SEC’s part to file a case against Ripple over the unregistered securities issue. White considers SEC as “wrong legally and factually” and asserts that there is “no way to sugar-coat it”.
White also talked about how the SEC’s lawsuit appears to be capricious, especially in light of the agency’s earlier declaration that Ethereum (ETH), the second-largest crypto in the glove which was created after XRP, is not a security.
White noted that the SEC action was mostly responsible for the loss of more than $15 billion in market cap for XRP. She also emphasized how this had an impact on normal investors, who ought to be covered by the SEC’s protections.
Mary Jo’s views and opinions not only hold considerable importance because she’s representing Ripple, but are also relevant due to her distinguishing and extensive professional experience as a lawyer.
Former SEC official, Andrew Ceresney who also serves as a Partner at Debevoise & Plimpton LLP also supports XRP lawsuit. The lawyer thinks that the SEC’s lawsuit is “ill conceived”.
He also thinks that the SEC has apparently dismissed the status and significance of XRP as a digital currency. This sheer ignorance also goes against the findings of other US-based regulatory bodies along with international regulations.
Stuart Alderoty has been serving as a Chief Legal Officer at Ripple and thus also fully supports XRP not being a security. He has been vocal about his support on Twitter.
The legal officer shared that the SEC has not been able to successfully satisfy the court with investment contracts.
The agency has also not been able to provide any single prong of the Supreme Court’s Howey Test. This is a standard test that is employed by the SEC to determine if an asset can be classified as a security or not.
A crypto enthusiast and legal expert called Meta law man has also shown unwavering support for Ripple.
He has worked as a trial lawyer and handled various security cases, the law expert in his recent tweets noted that the Judge sustained Ripple’s objection against the SEC’s expert testimony the agency wanted to provide in order to unveil the intentions of XRP purchasers.
The expert believes that this is a major setback for the SEC as the considerable anticipation of purchasers is an important element of the Howey test for determining an investment contract. He also believes that these rulings had overall positive outcomes for all Ripple proponents and for XRP holders. He also thinks that these rulings might be an obstacle in making a summary judgment win for the SEC.
Another XRP-proponent Jeremy Hogan who is also a member of U.S. legal counsel also supports Ripple. In his recent revelations regarding the
SEC’s lawsuit against Ripple, the lawyer thinks that the case could reach a settlement soon.
Hogan explained the prime reason why he owns XRP is because he strongly believes that Ripple cannot be sued again. He said CFTC cannot sue Ripple as the agency would have to come up with fraud allegations and SEC cannot craft fraud accusations to sue Ripple.
As far as the lawsuit settlement is concerned, Hogan notes that it could lead to a sudden surge in the XRP prices as demands of XRP would remain high.
The legal experts’ opinions featured in this article suggest that Ripple may have a strong case against the SEC and could potentially win their lawsuit. With the SEC unable to provide clear legal evidence that XRP is a security, Ripple has the support of many prominent lawyers and law firms.
Moreover, if Ripple does manage to reach an out-of-court settlement with the SEC or wins their case altogether, we can expect demand for XRP tokens to surge as many more people will be eager to invest in them. Ultimately, only time will tell how everything plays out between Ripple and the SEC but one thing is certain: no matter what happens next, XRP stands at an interesting crossroads right now.
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