Judge Torres mulls over the verdict in Ripple vs. SEC, as Alderoty considers regulation

Judge Sarah Netburn Torres of the Southern District of New York is deliberating on the landmark case between Ripple Labs Inc. and the U.S. Securities and Exchange Commission (SEC), also dubbed Ripple vs. SEC. The case, which has significant implications for the cryptocurrency industry, centres around whether Ripple’s XRP token qualifies as a security under U.S. law.

The courtroom drama intensified as both sides presented their arguments before Judge Torres. Ripple asserts that XRP is not a security but a digital currency akin to Bitcoin and Ethereum. On the other hand, the SEC argues that XRP should be classified as a security, alleging that Ripple engaged in an unregistered securities offering worth billions of dollars.

Experts Opinion On Appeals In The SEC vs. Ripple Case

Many others, like investment advisor Mickle, believe that because of Ripple’s numerous victories, the Ripple Vs. SEC lawsuit is likely the weakest one the U.S. SEC has ever faced. Nonetheless, as attorneys pointed out, there was still room for appeals by either party against earlier rulings.

Judges Analisa Torres and Sarah Netburn are now considering a number of motions in the Ripple Vs. SEC case, including ones pertaining to expert testimony, unsealed documents, and final judgment. A few attorneys, like Fred Rispoli and James Murphy, asserted that Judge Torres may announce the remedies phase’s ultimate verdict in July or August, thus, avoiding the motions before Judge Netburn. The SEC’s decision to not appeal the case, according to Ripple vs. SEC expert Sherrie, would negatively impact all of their future cryptocurrency cases. She further queries why Ripple would not challenge the ruling that sales through ODL constitute securities offers through an appeal. The sales of XRP ODL generate additional revenue for the firm.

Judge Torres will determine the penalty amount and provide an explanation, therefore Ripple and the XRP army need not worry about penalties. The key element that will affect its operations is how an injunction is worded. According to former SEC attorney Marc Fagel, “The SEC openly declared its intention to appeal the case.” Beyond that, conjecture can be made on the outcome of other examples, modifications to strategy or policy, etc. If the SEC files an appeal against the summary judgment, its main worries will be the denial of their prior interlocutory appeal and the possibility of an escalation to the Second Circuit Court.

Differing Opinion on Ripple vs. SEC Settlement

Advertisement Banner

The XRP lawsuit settlement is still the most contentious aspect of the case, with rumours swirling about any action taken by the SEC or Ripple. In light of the most recent rumors regarding the SEC’s private meeting. It became more intense when Ripple CEO Brad Garlinghouse discussed the case and settlement between Ripple vs. SEC in an interview with Bloomberg. However, attorneys Marc Fagel and Bill Morgan have refuted recent reports of a settlement. Executives at Ripple had disputed that Ripple vs. SEC settlement talks had taken place. The parties will probably be given time by the court to meet and discuss a solution, though.

Spiral CLO Regulatory Clarity with Stuart Alderoty

According to an EUI video published on July 26, Stuart Alderoty, chief legal officer of Ripple, discussed the changing regulatory environment around crypto assets. Alderoty examined the regulatory frameworks of the EU, the UK, and the US, emphasizing the distinctions between the EU’s MiCA, the UK’s Financial Services and Markets Act 2023, and the US’s “regulation by enforcement” approach.

He voiced his displeasure with the enforcement of crypto regulations in the United States. Thankfully, there is bipartisanship in the Congress over the clear regulations, Alderoty continued. In order to safeguard investors and facilitate the seamless adoption of technology advancements, regulators must use “measured regulation” to distinguish between good and bad actors. The price of XRP is now at $0.60, up 1% over the previous day. $0.5951 is the 24-hour low and $0.6089 is the 24-hour high. In addition, during the last day, there has been a noticeable decline in the trading volume.

Community stance – What to Expect?

The outcome of Ripple Vs. SEC case is eagerly anticipated by the cryptocurrency community and financial regulators alike, as it could set a precedent for how digital assets are regulated in the United States. If the court rules in favour of Ripple, it could provide clarity and potentially pave the way for more lenient regulatory frameworks for similar cryptocurrencies. Conversely, a ruling in favour of the SEC could have far-reaching consequences, potentially leading to stricter regulations and enforcement actions against other digital asset issuers.

Meanwhile, Ripple’s legal team remains optimistic about the case’s outcome, emphasizing the decentralized nature of XRP and its utility as a bridge currency in cross-border payments. Notably, Stuart Alderoty, General Counsel of Ripple, has highlighted the importance of regulatory clarity in fostering innovation and protecting investors within the cryptocurrency ecosystem. As Judge Torres continues to weigh the arguments presented by both parties, the cryptocurrency industry remains on edge, awaiting a decision that could redefine the regulatory landscape for digital assets in the United States. The BIT Journal provides updated information on the current events that blanket the crypto industry. Stay tuned!