The recent ongoing legal battle between the Securities and Exchange Commission (SEC) and Ripple (XRP) over security violations has affected many businesses, resulting in losses for XRP. Since the collapse of FTX, the SEC has taken a proactive approach in the realm of cryptocurrency.
The SEC has the least chance of success against Ripple
According to the lawyer Bill Morgan, who closely monitors this case and predicts that the SEC has only the least chance of success.
Recently, Bill made a post on ‘X’ (formerly Twitter) and shared his perspective. He mentioned that the only real issue in favor of the SEC is related to Ripple’s On-Demand Liquidity (ODL), which doesn’t satisfy the Howey test criteria. He also predicted that the possibility of the SEC’s success is as low as 3%.
However, a prominent attorney, Jeremy Hogan, made a post on ‘X’ on October 22, 2023, and shared data highlighting the success rate of the SEC in several appeals in various types of lawsuits. According to the data shared by Hogan, the SEC’s success rate in this ongoing legal battle is around 14.2%.
This lawsuit between Ripple and the SEC has been ongoing for three years and is set to continue with the next trial scheduled for April 23, 2024. However, on August 29, 2023, the judge ruled regarding XRP’s sale on cryptocurrency exchanges, stating that it did not violate any security laws. This ruling marked a partial victory for XRP.
The SEC dismissed all the charges against Ripple’s CEO and executive
The lawsuit by the SEC against Ripple has caused significant losses for businesses, as major cryptocurrency exchanges delisted Ripple’s native token, XRP. Notably, after the partial victory for Ripple, the SEC attempted to appeal the judgment but was unsuccessful.
Judge Analisa Torres stated that the SEC did not provide a proper reason to support their appeal, as reported by Todayq News on October 4, 2023.
Thereafter, the SEC dismissed all charges against Ripple’s CEO, Brad Garling, and Executive Chairman, Chris Larsen. This marked another significant win for Ripple and its leaders. With these charges dismissed by the SEC, Morgan predicts that there will be no trial next year.