- The Ripple vs. SEC case focuses on remedies discovery and briefing, with a U.S. Supreme Court precedent potentially influencing the outcome.
- Pro-XRP lawyers speculate on the case’s implications, considering the extraterritorial effect of U.S. securities law and the likelihood of a settlement.
Ripple’s Legal Standoff with the SEC
In the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), a U.S. Supreme Court precedent could play a crucial role in determining the outcome, particularly concerning Ripple’s institutional sales of XRP.
The Morrison Precedent
Lawyer Jeremy Hogan has brought attention to the Morrison v. National Australia Bank case, previously adjudicated by the U.S. Supreme Court, which he believes could be significant in the Ripple lawsuit. This precedent emphasizes that sales in question must have occurred “in the U.S.” or on a U.S. exchange, raising questions about the SEC’s jurisdiction and the extraterritorial application of U.S. securities laws.
Extraterritoriality in Focus
The Ripple vs. SEC case delves into the extraterritorial effect of U.S. securities law, with both parties agreeing to a briefing schedule on remedies for Section 5 violations. The SEC argues for a $770 million disgorgement from Ripple, which Ripple is set to challenge. The question of whether the SEC can extend its enforcement reach beyond U.S. borders is pivotal, especially considering potential international implications.
Legal Opinions and Settlement Prospects
Lawyer James Farell pointed out that Judge Torres has previously addressed the jurisdiction issue in the case, denying Ripple‘s motion to dismiss the lawsuit. Pro-XRP lawyer Bill Morgan added to the discussion, noting the unlikely possibility of a scenario similar to the Morrison case due to the jurisdiction issue and implications of SEC v. Govil. Morgan anticipates that after proceeding with the agreed-upon legal process and considering all evidence, Ripple and the SEC are likely to reach a settlement, possibly with a reduced disgorgement amount.
The Ripple vs. SEC lawsuit represents a critical juncture in the broader context of cryptocurrency regulation. The outcome, potentially influenced by the Morrison v. National Australia Bank precedent, may set a significant precedent for the jurisdictional reach of U.S. securities law, especially in the evolving landscape of digital assets. As the legal process unfolds, the crypto community watches closely, understanding that the case’s resolution could have far-reaching implications for the industry’s regulatory future.
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