Fagel Reveals US SEC’s Broad Plan Behind the Appeal
Marc Fagel, a former official of the US Securities and Exchange Commission (SEC), has disclosed the main reason why the SEC is seeking permission to certify an interlocutory appeal in the ongoing Ripple vs SEC lawsuit. This revelation comes in response to Binance’s recent motion to dismiss the SEC’s request to appeal, citing the Ripple ruling as a crucial legal precedent.
The Appeal as a Strategic Move
Fagel, with his extensive knowledge of securities litigation, explained that the SEC’s appeal is a strategic move to counteract the implications of the Ripple ruling on its broader enforcement program. He noted that if the ruling only applied to issuers of securities-related assets and tokens, the SEC could have worked around it. However, since it could also impact pending litigations against crypto exchanges like Coinbase and Binance, an appeal became necessary.
SEC’s Concerns
The SEC shares concerns about how the court’s decision on programmatic sales could significantly affect its ongoing litigations. The court has yet to decide on the SEC’s request to certify an interlocutory appeal. John Deaton, founder of Crypto-Law.US, speculated that the court might deny the request, forcing the regulator to wait until next year for a full appeal.
Impact on Binance
Binance has submitted a memorandum of law in support of its motion to dismiss the SEC case. The exchange’s lawyers highlighted the Ripple ruling to argue for dismissing the complaint. They believe that this ruling sets a precedent that could undermine the SEC’s broader agenda against crypto exchanges. The SEC anticipated other crypto-related companies like Binance and Coinbase using the Ripple ruling in their defense strategies.
Hot Take: Ripple Ruling Poses Challenges for SEC’s Enforcement Program
The recent Ripple ruling has thrown a wrench into the SEC’s enforcement program. The agency’s pursuit of an interlocutory appeal is a strategic move to mitigate the impact of the ruling on its litigations against crypto exchanges. However, if the court denies the appeal, it could create significant challenges for the SEC, forcing them to wait until next year for a full appeal. This situation has put Binance and other companies in a favorable position, as they can leverage the Ripple ruling to strengthen their defense strategies.
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