In a recent turn of events, the federal court presided over by Judge Analisa Torres dealt a blow to the SEC by denying its motion for an interlocutory appeal in the case against Ripple. The court upheld its mid-July ruling, where XRP was deemed not a security, and Ripple was slapped with a hefty $700 million fine for the unregistered sale of securities to legal entities. The trial is scheduled to resume on April 23, 2024.
Retired lawyer Marc Fagel, a former SEC regional director, shared his insights on the future course of action for the SEC. According to Fagel, the SEC must resolve the individual case against Ripple, either through trial, settlement or dismissal. Additionally, the SEC needs to determine the remedies for Ripple's illegal securities offering, either through a settlement negotiation or a court hearing.
When questioned about the potential settlement amount for the $700 million violations, Fagel admitted the case's uniqueness made it challenging to estimate. He also critiqued the SEC's approach, particularly its inclusion of Ripple's top executives, Brad Garlinghouse and Chris Larsen, in the original complaint. Fagel argued that pursuing individual cases against them seemed futile, considering the low probability of success.
The SEC's handling of the case has sparked debates about its impact on retail investors. Fagel, while acknowledging the regulator's missteps in the crypto space, defended its action against Ripple. He stressed the importance of holding accountable a company that unlawfully raised over $700 million, underlining the SEC's obligation to uphold securities laws.
Tomiwabold Olajide
Arman Shirinyan
Godfrey Benjamin
