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Crypto Law Experts: Ripple Set to Beat SEC And Win Lawsuit

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According to legal experts, the US-based blockchain company, Ripple Labs will eventually triumph in its legal battle with the U.S. Securities and Exchange Commission (SEC). The SEC lawsuit against Ripple is expected to make a huge impact on the crypto and blockchain community and it is widely anticipated all over the world. With Ripple’s recent surge in accumulation is likely attributable to a possible settlement of the lawsuit.  

Legal Experts Say Ripple Is On Track To Win This Case

Ripple has been in a legal battle with the SEC for almost two years. Predictions and anticipations about XRP’s future have been in the limelight as this could affect the crypto industry as well. Some legal observers stated that  Ripple is moving closer to victory. 

Legal experts Curt Levey of the Federalist Society and Professor J.W. Verret of George Mason University’s Scalia School of Law, respectively believe that Ripple is on track to win this case. According to Verret, if the SEC decides to appeal to the Supreme Court, it is likely to lose, which would set a precedent that would limit or eliminate entirely the application of Howey on cryptocurrencies. The Howey test is used to determine whether certain transactions qualify as “investment contracts” and are therefore subject to U.S. securities laws.

Another leading legal expert Attorney Jeremy Hogan stated  SEC would be unable to prove its case against the company unless Judge Torres who is presiding over the case forgets her first year of law school.

SEC’s Potential Defeat Against Ripple And Its Self-Inflicted Disaster

As reported by Forbes, the verdict could significantly limit the SEC’s authority to regulate crypto and if that is how it turns out it will have been a self-inflicted disaster from the start. The SEC sued Ripple and two of its executives in December 2020, accusing the company of violating securities laws and categorizing the sale of its XRP token as unregistered securities. Ripple contested that the SEC had no legal basis for requiring it to register XRP as a security. Additionally, more than 75,000 XRP investors have joined the cause of filing amicus briefs in support of Ripple.

With the recent development of the case earlier in October, SEC is forced to hand over the Bill Hinman documents. The documents affiliated stated that  Ethereum (ETH) is not a security because its ledger had “decentralized” over time. Consequently highly relevant to the case, Ripple is taking a similar stance. A Ripple victory could not only boost their token prices but also set a precedent that prevents the SEC from labeling cryptocurrencies as securities.

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