SEC Can Still Bring Claims Against Ripple’s Executives
According to legal expert Fred Rispoli, the US Securities and Exchange Commission (SEC) could still file another lawsuit against Ripple’s executives, Brad Garlinghouse and Chris Larsen, if they were to appeal Judge Analisa Torres’ ruling. Rispoli noted that while the SEC dismissed the claims against them in relation to institutional sales, they could still bring claims regarding programmatic sales and other distributions if they win an appeal.
Limitations of the Dismissal
Rispoli emphasized that any action from the SEC would be limited to programmatic sales and other distributions since the dismissal with respect to institutional sales was “with prejudice,” meaning it cannot be brought up again. In a previous ruling, Judge Torres deemed institutional sales as investment contracts, classifying them as securities.
Settlement Expected
Ripple and the SEC are expected to settle on Ripple’s violation of securities laws. The firm will likely have to pay a fine for its violation. Rispoli suggested that an appeal from the SEC is unlikely, as they are more focused on reaching a settlement and concluding the case.
No Appeal Expected
Rispoli also mentioned that there may have been assurances from the SEC to not file an appeal. He speculated that Garlinghouse and Larsen’s high-powered attorneys may have requested the dismissal of all claims, including those related to programmatic sales and other distributions.
Predicted Outcome
Rispoli had previously predicted that the SEC would not take Ripple’s executives to trial and only brought forward claims to pressure Ripple into a weak settlement position.
Unlikely Appeal by SEC
Pro-XRP legal expert John Deaton also suggested that the SEC is unlikely to appeal, possibly due to the fallout from the ETH Gate saga, which may have forced them into a surrender.
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