Ripple vs SEC: Legal expert predicts five conclusions
A pro-XRP legal expert has offered his opinions on the likely results of the SEC's well-publicized lawsuit against blockchain startup Ripple as it appears to be drawing to a close.
A pro-XRP legal expert has offered his opinions on the likely results of the well reported litigation between the United States Securities and Exchange Commission (SEC) and blockchain corporation Ripple, which is nearing its conclusion.
In fact, Scott Chamberlain, a former attorney, and co-founder of the permissionless Layer 2 platform Evernode XRPL, identified five potential outcomes for the lawsuit's resolution in a March 10 Twitter thread, including summary judgements, the opportunity for settlement, and further lawsuits.
Possible Results
The legal expert specifically stated that he didn't believe the regulator had "anything near the evidence to suggest they deliberately or carelessly offered an unregistered security" in relation to Ripple CEO Brad Garlinghouse and co-founder Chris Larsen.
In response to Ripple's request for summary judgement on sales made abroad, Chamberlain said:
“Ripple’s sales of XRP on overseas exchanges are not within the court’s jurisdiction,” adding that “a wholly new precedent would be set to deem those domestic transactions finalized in the US.”
Furthermore:
“Summary Judgement dismissing the part of the case that asserts XRP itself is a security – no precedent supports the digital asset itself being a security. This claim was a contrivance for the SEC not to have to prove each sale and to avoid the problem of overseas sales.”
Chamberlain further emphasised that a limited case that would investigate whether any of Ripple's sales of the XRP coin in the U.S. included an unregistered investment contract may result from this complaint.
According to the creator of Evernode XRPL, the fifth possibility is that the lawsuit is resolved, provided that precedents on the claim that XRP is a security and the court's jurisdiction over international sales are established. He justifies this by saying:
“I happen to believe the SEC underestimated that most of Ripple’s sales occurred on overseas exchanges through algorithmic trading. Once overseas and secondary market sales are excluded, there’s insufficient meat left on the bone.”
The decision of the SEC Vs Ripple lawsuit will have a significant impact on crypto regulation.
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