- Ripple Labs CEO Brad Garlinghouse has expressed optimism about winning the SEC.
- Additional details have sparked debate amongst legal experts on the prospects of both Ripple and the SEC.
Ripple Labs is still feeling pumped about its chances to win the lawsuit it has with the United States Securities and Exchange Commission (SEC). In the 2023 XRP Las Vegas event which was held in February, the Chief Executive Officer (CEO) of Ripple Brad Garlinghouse assured XRP supporters that victory is in their favor. Attorney John Deaton, a pro-crypto lawyer representing 75000 XRP holders also attended the XRP Las Vegas event.
Speaking on the two-year-long lawsuit with the SEC over the categorization of XRP as securities, Garlinghouse said, “We’re Gonna Win This Thing.”
He later made a Twitter post appreciating the XRP community members who have shown immense support to the protocol since the beginning of the lawsuit and those who attended the event.
Hey Gaahree, we wish you were with us at the Inaugural SOLD OUT #XRPLasVegas2023!!
Some of the VERY COOLEST @Ripple people are talking about you, @GaryGensler! @BlackberryXRP @bgarlinghouse @DigPerspectives @digitalassetbuy @JohnEDeaton1 @valhiladvisors @mollyelmore22… pic.twitter.com/njXZtKUyIx
— Rob Cunningham | KUWL.show (@KuwlShow) May 6, 2023
Also, the emergence of a series of new information has further fueled the excitement of the Ripple community. Last week, Attorney Jeremy Hogan recalled a lawsuit between the U.S. regulator and a mining firm called Rio Tinto. He emphasized how the U.S. district judge of the United States District Court for the Southern District of New York Analisa Torres ruled against SEC.
The SEC went further to appeal the verdict of Judge Torres hoping for a different ruling but the appellate court upheld Judge Torres’ decision. In this particular lawsuit, the SEC claimed that Rio Tinto had failed to provide accurate information about the valuation of its 11 years old coal mine. However, Judge Torres doused the fire by clarifying that scheme liability does not apply when the sole basis of a claim is misrepresentation or omission.
XRP Community Awaits Judge Torres’ Verdict
Hogan’s reference to this case has hinted at a possible victory for Ripple in its lawsuit with SEC. Then a few days ago, John Deaton engaged in a verbal feud with Marc Fagel, a former SEC attorney. The latter opined that Ripple had violated securities laws by selling XRP based on Section 5 of the Securities Act. In his argument, he believes that the SEC has the upper hand over Ripple.
At the same time, he claimed that he would not be surprised if Ripple eventually wins the case. In response, Deaton explained that the purchase of XRP was merely an investment into a common enterprise. Furthermore, he said his problem was how the SEC made its claims. In the end, Fagel agreed to wait to see how the lawsuit turns out
However, lawyer and crypto enthusiast Bill Morgan reminded both Deaton and Fagel that the issue which Judge Torres is concerned with is “whether Ripple sold XRP as a security despite the SEC taking broader positions at times in this litigation.”
Judge Torres made it very clear in the Daubert motion decision that the issue she must decide is whether Ripple sold XRP as a security despite the SEC taking broader positions at times in this litigation that seemed to suggest any sale of XRP was an investment contract or /1 https://t.co/HL1mclv8Xg pic.twitter.com/BrcHGAQlG9
— bill morgan (@Belisarius2020) May 8, 2023
He also pointed out “A more relevant question which I try to grapple with is how wide can the SEC argue is the single continuous offering by Ripple of XRP into secondary markets by relying on an allegation that Ripple distributed XRP through statutory underwriters.”