The lawsuit between the US Securities and Exchange Commission (SEC) and Ripple (XRP) has been a major point of interest in the cryptocurrency industry since it began in 2020. However, recent developments have brought even more attention to this ongoing legal battle.
In July, Judge Analisa Torres ruled that secondary sales of XRP did not qualify as investment contracts. This ruling dealt a blow to the SEC as it contradicted one of their main arguments. But did the SEC make another significant mistake in the subsequent events?
According to a legal expert who analyzed the case, the Commission made a serious blunder when it decided to file for an interlocutory appeal. The expert argues that Judge Torres did not rule that sales over exchanges cannot be considered investment contracts.
In a detailed analysis, the attorney stated that the judge’s ruling only indicated that the SEC failed to provide sufficient evidence that a reasonable retail investor would believe they were relying on Ripple’s efforts for profits. Furthermore, the Commission failed to present any evidence of a single XRP holder who claimed to be relying on Ripple to increase the price of XRP.
The legal expert believes that the SEC is now stuck with the existing record. Typically, a party appealing a final ruling has the opportunity to interpret the ruling in a way that benefits them, while the court that issued the ruling does not have a chance to explain or clarify. However, in this case, Judge Torres will have the chance to clarify her ruling, making it clear that the SEC simply failed to meet its burden of proof.
It is important to note that no new evidence or legal arguments can be introduced during an appeal. Therefore, the SEC’s options are limited to the existing record.
Meanwhile, XRP’s price has been experiencing a decline, with a decrease of over 17% in the past seven days. Despite this, some analysts believe that the SEC’s setbacks in the case could potentially pave the way for a recovery in the near future.
The outcome of the SEC’s case against Ripple remains uncertain, but the recent developments and legal analysis suggest that the SEC may have made a significant mistake in their approach. As the cryptocurrency industry closely watches this high-profile lawsuit, the implications for the regulatory landscape and the future of XRP are yet to be determined.
Disclaimer: This article is for informational purposes only and should not be considered as legal or financial advice. The opinions expressed in this article are solely those of the author and do not reflect the views of CrypTo Time.
