Will the case between Ripple and the U.S. Securities and Exchange Commission (SEC) go all the way to the Supreme Court? A former SEC crypto unit head has chipped in, suggesting that the legal fight between the two parties over crypto asset classification is likely to reach the Supreme Court.
Supreme Court Showdown Incoming?
The XRP lawsuit is poised to escalate to the Supreme Court.
This is the opinion of Ladan Stewart, a former leader in the Crypto Assets and Cyber Unit of the Securities and Exchange Commission, who helped spearhead charges against crypto exchange Coinbase. Speaking during a panel at the Columbia Business School, Stewart revealed that the SEC considers the sales and offering of tokens as securities, but this does not apply to the underlying asset.
According to the former SEC litigator, the case between the agency and San Fransisco-based Ripple will likely move to the Supreme Court to resolve fundamental questions about what makes a crypto asset a security, per a Fortune report. “Then there will be some definitive sort of clarity on that question,” Stewart opined.
Ripple’s chief executive officer Brad Garlinghouse previously said the company would welcome a chance to take its legal fight with the SEC to the Supreme Court, asserting, “We are in it till the end.”
Does Ripple Have The Upper Hand?
Despite notching a major win against the SEC in July 2023, Ripple is still facing a mind-boggling $2 billion fine from the regulator. Additionally, the SEC is expected to appeal the July ruling, where Judge Analisa Torres declared that programmatic sales of XRP to retail investors did not qualify as securities.
Last October, the SEC dropped all charges against Garlinghouse and Ripple’s executive chairman, Chris Larsen, marking another major victory for the blockchain payments firm.
Overall, one could conclude that the SEC is now feeling the pressure after Ripple scored two major legal wins in the case. Furthermore, should the case reach the Supreme Court, Ripple has a high chance of emerging victorious. As Ripple’s chief legal officer, Stuart Alderoty, observed last November, the Supreme Court has repeatedly ruled against the securities regulator in recent years.
The final result of the XRP suit could reverberate through the entire crypto space. A favourable legal outcome for Ripple would set a key precedent for other crypto assets, resulting in a swift increase in innovations and market adoption.
Notably, the positive conclusion of the case would ignite an explosive rally for XRP, which has been in the doldrums since the lawsuit was lodged three years ago. Some crypto spectators estimate the price of XRP could soar past its current all-time high of $3.40 within hours if Ripple ultimately prevailed in the case.
XRP traded for $0.5 at press time, marking a +1.2% change in the past 24 hours.
