The long-standing legal battle between Ripple Labs Inc. and the U.S. Securities and Exchange Commission (SEC) is set to reach a decisive point in the coming days, according to an industry veteran. Marc Fagel, a former attorney who served as the SEC's San Francisco regional director, shared his insights on the case, suggesting that a ruling could be imminent.
Fagel's comments came in response to a tweet from an XRP community member, who expressed concerns over the possibility of the SEC dropping its lawsuits before summary judgment, potentially undermining the authority of the presiding judge. The tweet suggested that a delay in the ruling could strengthen the argument that the judge's decision was influenced by public reactions and that it would create further confusion, leading to speculation of intentional encouragement of greater uncertainty.
The former attorney tried to avoid speculation but opined that a ruling could be expected within days. He stated that any delay in the case was likely due to its complexity and not an indication of ulterior motives.
Fagel also clarified that Ripple, the company behind XRP, was distinct from other recent SEC enforcement actions. He noted that the judge's ruling is unlikely to address the issue of secondary market trading, and that the Hinman emails in question may only be referenced in connection to a ruling on the individual defendants' liability.
3/ One caveat: I could see the ruling referencing the emails (insofar as they evidence legal uncertainty) in connection with a ruling on the individual defendants' liability. Not a sure thing, but possible.
— Marc Fagel (@Marc_Fagel) June 15, 2023
John Deaton, an attorney and legal representative for XRP holders, also weighed in on the matter. He highlighted his belief that charging individual executives with aiding and abetting, based on a recklessness standard, was a significant mistake. Deaton expressed confidence that no reasonable jury would find any executives reckless.
Alex Dovbnya
