The SEC’s Mistake in Appealing Judge Torres’ Ruling
The United States Securities and Exchange Commission (SEC) has filed an interlocutory appeal following Judge Analisa Torres’ ruling in favor of Ripple. However, attorney and crypto enthusiast Greg Beuke believes that the SEC misunderstood the ruling.
- Judge Torres did not rule that programmatic sales cannot be investment contracts.
- The SEC failed to establish that XRP investors bought the cryptocurrency hoping to profit from Ripple’s efforts.
- The SEC relied on inadequate evidence, including cherry-picked statements from Ripple and select employees.
- Beuke argues that the SEC’s interlocutory appeal is a strategic mistake, as it allows Judge Torres to clarify her ruling and potentially weaken the SEC’s case.
- Beuke believes that the Judge will make it clear that the SEC failed to meet its burden of proof.
SEC Likely to Lose Its Appeal in Ripple Case
Beuke points out that the SEC cannot introduce new evidence or make new arguments in its appeal. The appeal court will only have the existing records to consider, which show that the SEC provided little to no evidence to support its case.
- The appeal court is likely to consider Judge Torres’ ruling, which was based on an undisputed factual record.
- The SEC was expected to prove that a reasonable retail XRP purchaser was aware of Ripple and relied on Ripple’s efforts for profits.
- Ripple has a stronger case as the SEC had no response to affidavits of XRP holders presented by prominent XRP lawyer John Deaton.
Hot Take: The SEC’s Appeal is a Strategic Mistake
Based on the analysis by Greg Beuke, it seems that the SEC’s decision to appeal Judge Torres’ ruling in the Ripple case is a significant strategic mistake. The agency misunderstood the ruling and failed to provide sufficient evidence to support its arguments. By filing an interlocutory appeal, the SEC has given Judge Torres an opportunity to clarify her ruling and potentially weaken the SEC’s case further. It is likely that the SEC will lose its appeal and Ripple will have a stronger position in the ongoing legal battle.
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