Just recently, former Securities and Exchange Commission (SEC) regional director and experienced attorney, Marc Fagel, weighed in on the ongoing legal battle between Ripple and the SEC.
Fagel believes that while the blockchain payments firm and its digital asset XRP may currently be celebrating their recent victory in based on the recent summary judgment, their triumph could be cut short if the case is appealed to the Second Circuit court.
Fagel Analysis on Ripple vs SEC Case
According to Fagel, the court’s decision has created a divided outcome, thereby giving room for dispute on both ends. In his words “When you buy stock, you don’t know who you are buying it from, that the outcome is radically different for an investment contract is illogical”.
He believes that if the case proceeds to the Second Circuit Court, Ripple’s chances of a favorable outcome may dwindle as the court has historically been less sympathetic to defendants in securities cases, often favoring the SEC’s arguments.
Fagel’s expertise in securities law makes his analysis of the situation particularly noteworthy.
As a former SEC regional director, he possesses first-hand knowledge of the inner workings of the organization and understands the agency’s perspective on such matters. Additionally, his experience as an attorney gives him valuable insight into the legal complexities surrounding the Ripple case.
Fagel Expresses Skepticism
Notably, this is not the first time, Marc is giving his insights about the battle between Ripple and SEC. previously, he highlighted that while a settlement would not establish legal precedent, it could still have significant implications for both parties involved.
Furthermore, he expressed skepticism about the likelihood of a settlement, noting that if one were to occur, it would likely have happened during the course of the legal proceedings. He also pointed out that a recent unsealing order issued by Judge Torres showed that the court had already decided on its upcoming verdict.
Basis of the Ripple vs SEC Lawsuit
The SEC’s lawsuit against Ripple, filed in December 2020, alleges that the company conducted an unregistered securities offering by selling XRP tokens.
However, ripple has vehemently denied these allegations, asserting that XRP is a cryptocurrency and not a security. The outcome of this case is expected to have significant implications for the broader digital asset industry, as it could potentially set a precedent for how cryptocurrencies are regulated in the United States