U.S. District Judge Analisa Torres has formally endorsed the U.S. Securities and Exchange Commission‘s (SEC) dismissal of the case against Ripple executives Brad Garlinghouse and Chris Larsen.
However, legal experts in the community are analyzing the event, which means the U.S. regulator may be willing to settle alongside the potential to file another charge against the Ripple executives.
In a recent post on X, Attorney Fred Rispoli argued that the SEC could sue Ripple’s CEO and chairman after it succeeds in appealing the July 13 ruling. For context, the U.S. court ruled in July that Ripple’s programmatic sales and other distributions of XRP do not constitute investment contracts, as the SEC claimed.
Therefore, Rispoli believes the U.S. regulator can theoretically revive claims against Ripple’s executive if it successfully overturns the programmatic sales and other distributions ruling.
…include Institutional Sales in the dismissal? I doubt it. I think this is more proof the SEC is going to–as Water T would say–”crunch the numbers” and wrap this one up for good. 4/4 pic.twitter.com/NjmO4XwwV8
— Fred Rispoli (@freddyriz) October 23, 2023
Meanwhile, the lawyer stressed that the SEC could not revive claims against the executives based on the dismissed charges relating to Ripple’s XRP sale to institutional investors. This view is according to the terms of the dismissal.
Besides, Rispoli suggested that the SEC’s decision to dismiss the case with prejudice was based only on the institutional sales theory. Therefore, according to the lawyer, the regulator may be willing to settle the case altogether.
“I think this is more proof the SEC is going to “crunch the numbers” and wrap this one up for good,” the attorney remarked. Another prominent pro-XRP lawyer, Bill Morgan, agreed with Rispoli’s sentiment that the SEC is not confident in its success on appeal.
“It could be seen as a strong indication that the SEC agrees with most of the attorneys in the XRP community that its appeal prospects are poor and it is not intending to appeal,” Morgan added. Notably, pro-XRP lawyers in the crypto community have argued the SEC has only 3% to 14% of success in cases of appeal against Ripple.
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