The SEC’s Mistake in the XRP Lawsuit: Did They Blunder Again?
The ongoing lawsuit between the US Securities and Exchange Commission (SEC) and Ripple has been a major point of interest in the crypto industry. The latest developments, however, have intensified the attention on this case. In July, Judge Analisa Torres ruled that secondary sales of XRP were not investment contracts, which was a setback for the SEC. But it seems that the SEC may have made another mistake in the subsequent events.
Key Points:
- The SEC filed for an interlocutory appeal, but a legal expert argues that this was a serious blunder.
- Judge Torres’ ruling did not state that sales over exchanges cannot be investment contracts.
- The SEC failed to provide evidence that retail investors relied on Ripple’s efforts for profits.
- No new evidence or legal arguments can be presented on appeal, which puts the SEC at a disadvantage.
- XRP’s price has declined by over 17% in the past seven days.
According to the legal expert, the SEC’s decision to file for an interlocutory appeal was a mistake. The judge’s ruling did not explicitly state that sales over exchanges cannot be investment contracts. Instead, the ruling simply highlighted that the SEC failed to prove that a reasonable retail investor would believe they were relying on Ripple’s efforts for profits. The expert emphasizes that the SEC also failed to present any evidence of a single XRP holder who claimed to rely on Ripple to increase the price of XRP.
The expert points out that the SEC is now stuck with the existing record, as no new evidence or legal arguments can be introduced on appeal. This puts the SEC at a disadvantage, especially if Judge Torres clarifies her ruling and makes it clear that the SEC failed to meet its burden of proof. Meanwhile, XRP’s price has experienced a significant decline of over 17% in the past week. However, some analysts believe that the SEC’s missteps might create an opportunity for a potential recovery in the near future.
Hot Take:
The SEC’s decision to file for an interlocutory appeal may have been a serious mistake. By doing so, they may have put themselves at a disadvantage, as the judge’s ruling did not explicitly support their argument. This blunder, combined with the recent decline in XRP’s price, could potentially pave the way for a positive outcome for Ripple in the lawsuit.
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