The Securities and Exchange Commission has filed a motion to withdraw one of its lawyers in its ongoing legal tussle against Ripple.
The Securities and Exchange Commission (SEC) has filed for the withdrawal of one of its attorneys in its legal tussle against Ripple Labs.
According to a recent court filing shared by Fox Business journalist Eleanor Terrett, Pascale Guerrier is no longer the attorney of record for the SEC in the ongoing lawsuit.
“The Securities and Exchange Commission respectfully moves the court for an order in the form attached hereto withdrawing Pascale Guerrier as counsel of record in this action for Plaintiff. Ms. Guerrier is no longer participating in this matter,” the SEC stated.
🚨NEW: The @SECGov files a motion for withdrawal of one of its attorneys in the @Ripple case.
“Ms. Guerrier is no longer participating in this matter. The SEC continues to be
represented by the other counsel of record in this matter.” pic.twitter.com/TY7mpwLN6s— Eleanor Terrett (@EleanorTerrett) August 23, 2023
The filing that was lodged yesterday is effective immediately. Furthermore, the SEC noted that other attorneys recorded previously will continue to represent the commission in the lawsuit.
Guerrier to Exit Ripple Case Amid Pending Issues
It is worth noting that Attorney Guerrier is a senior lawyer in the SEC’s rank. The attorney has relevant expertise in securities law. Although Judge Analisa Torres has issued a summary judgment decision in the case, the Ripple’s legal battle is far from over.
The SEC recently filed a motion for an interlocutory appeal. Additionally, the SEC’s case against Rippe execs- Brad Garlinghouse (Ripple CEO) and Chris Larsen (Ripple’s chairman)- has been scheduled for trial in Q2 2024.
It is expected that Guerrier’s expertise would have been instrumental in these cases. However, the commission has filed a motion to withdraw her from the Ripple lawsuit.
XRP Holders React
The SEC’s decision to withdraw Guerrier from the Ripple lawsuit adds a new layer of uncertainty to the proceedings. Many XRP holders have been trying to guess why the SEC withdrew the attorney.
Some XRP enthusiasts speculated that the withdrawal could result from an internal disagreement within the SEC about how the commission should proceed with the Ripple case.
Others suggested that Guerrier is leaving because she does not want to be “tied to the wrong side of history.”
Someone doesn’t want their name tied to the wrong side of history.
— JaceSparks.eth (@creativejace) August 23, 2023
XrpCryptoWolf Said:
SEC has lawyers quitting before the ship sinks completely 😂
— XRPcryptowolf (@XRPcryptowolf) August 23, 2023
Deaton Says Her Exit Means Nothing
Interestingly, pro-XRP lawyer John Deaton also reacted to the development. He noted that Attorney Guerrier’s exit from the case means nothing.
Deaton said the SEC could be reassigning Guerrier to other litigations or that she could be leaving the commission entirely.
He pointed out that Attorney Guerrier started working on the Ripple case after her colleague Jorge G. Tenreiro was promoted. Deaton added that she joined the case after Dugan Bliss left the commission to work for bankrupt crypto lender BlockFi.
This means nothing. Guerrier could be reassigned or could be leaving the SEC. She started working more on the Ripple case after Tenreiro got a promotion (although he still is in charge of the case) and Attorney Bliss left the SEC to go work for BlockFi. Tenreiro had Guerrier…
— John E Deaton (@JohnEDeaton1) August 23, 2023
According to Attorney Deaton, Tenreiro, who is the SEC’s lead counsel, appointed Guerrier to head the oral argument for William Hinman’s speech documents.
Per Deaton, Guerrier lied in court that the SEC was not inconsistent with its position on Hinman’s documents. Recall that the SEC first argued that Hinman’s 2018 speech on cryptocurrencies was his personal opinion and not a guidance to the market.
The SEC later changed this position after the court ordered it to surrender the document to Ripple. It argued that Hinman, who was director of SEC’s Corporation Finance, gave the speech as guidance from the division.
The pro-XRP lawyer said Tenreiro knew the legal tussle for Hinman’s document was tough. Hence, he chose Guerrier as the sacrificial lamb for Judge Sarah Netburn’s criticism.
As reported, Judge Netburn criticized the SEC for its hypocrisy, adding that the commission lacked faithful allegiance to the law.
“That comment by Judge Netburn was 100% directed at not only Guerrier but also at Tenreiro. Of course, a true leader would’ve gone in and taken the beating or loss himself,” he added.
