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- An ex-SEC official and specialist in securities law enforcement has weighed in on the SEC’s recent appeal that seeks to object to the ruling that XRP is not a security.
- An appeal is unlikely to succeed given how important this case is for the entire crypto market.
A legal expert and ex-SEC official have shared his views on the ongoing Ripple v SEC case. The U.S. Securities and Exchange Commission (SEC) has recently filed an interlocutory appeal that seeks to object to the court ruling that XRP retail sales do not constitute an investment contract.
Ripple has since objected to this appeal, accusing the SEC of prolonging the case. According to the SEC, the recent court’s ruling has broader legal implications for the crypto market. The SEC through its chair Gary Gensler has stated that a majority of cryptocurrencies are securities. The chair has further asserted that the existing framework is sufficient to regulate the crypto market. However, market leaders have maintained that the SEC has been regulating the market through enforcement.
Following the recent developments around Ripple and the SEC in their ongoing legal battle, the XRP community has been sharing their respective views on the progress and giving different predictions on the outcome.
One notable comment has come from a legal expert and ex-SEC official. Sharing on X (formerly Twitter), Marc Fagel has spoken on the chances that the courts grant the SEC’s interlocutory appeal. It all began with a question that was posed to the expert. A user going by the name @jungleincX directed the question, noting;
@Marc_Fagel do you think the SECs request for interlocutory appeal is granted.
1. Seems like this case is very important for an entire industry and involves novel areas of law.
2. There are currently conflicting rulings.
Do these items factor in?
In response, Fagel argued that specific requirements for interlocutory appeal are hard to meet. This is encouraging news for the XRP community who expect Ripple to ultimately win the case. He noted;
I agree with those points, and think they should factor in. However, the specific requirements for interlocutory appeal are hard to meet. I think the odds are against granting the request unless the court looks to the points you raise.
The expert also responded to another question on whether the SEC was likely to settle to avoid Hinman and Clayton to testify. To this, the expert noted that the statements from the former SEC officials were not a major concern. He noted;
I think if the SEC is interested in settlement, it’s because the remaining claims against the individuals are high risk. I don’t think testimony from former SEC officials is a major factor.
Interestingly, the XRP community has long been speculating that Ripple will likely announce a full settlement with the SEC during the 29th September victory party. Furthermore, there’s been speculation of a possible IPO announcement.
