There is speculation that, SEC (SEC) May Drag Ripple Labs Founder Into Regulator’s Long Run legal battle against their company. However, pro-XRP legal expert Fred Rispoli outlined why this is unlikely to happen.
SEC unlikely to sue Ripple founder
Risbury said in a statement tweet Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen are unlikely to be brought to trial by the SEC for “a number of reasons.”
The agency had accused Ripple Labs of selling unregistered securities back in 2020. But while it highlighted Garlinghouse and Larsen as part of the wrongdoing, it never brought charges against them specifically.
It’s not uncommon for the SEC to take action against executives whenever the SEC files a lawsuit against a defaulting company.In April, the commission sued Cryptocurrency exchange Bittrex and its former chief executive, William Shihara, run an unregistered stock exchange.
However, Rispoli believes that the SEC is only threatening to file lawsuits against Garlinghouse and Larsen to force the company to take a “weak settlement position” and does not intend to maintain the lawsuit against them.
He noted that a trial is also unlikely because the SEC doesn’t want a situation where its credibility is called into question, which he thinks could happen if former SEC Chairman Jay Clayton and former SEC Director William Hinman were called on the witness stand.
Rispoli’s position may be related to the Seaman documents, highlighting questionable practices and possible corruption at the agency.It is believed Seaman may have been Influence He was attacked by outside forces when he stated that ether is not a security.
XRP price ranging at $0.52 | Source: XRPUSDT on Tradingview.com
The SEC’s case is weak
Explaining why the SEC is unlikely to prosecute Garlinghouse and Larsen, Rispoli said the commission would find it difficult to prove that the executives were reckless in institutional sales because they could argue that the sales were procedural (Judge Torres saying rule does not constitute an investment contract).
The attorney further emphasized that the SEC did not have sufficient evidence to distinguish between domestic and international sales when presenting its case.
Rispoli noted that the regulator just restructured much of the trial team, which could mean the regulator doesn’t have enough manpower to handle the additional lawsuits involving Garlinghouse and Larsen.
The U.S. Securities and Exchange Commission (SEC) has taken action by filing a interlocutory appeal Judge Analisa Torres ruled in favor of Ripple Labs. But Rispoli said it was a “Hail Mary” move by the commission because it would have no “bargaining leverage” if the appeal was not granted.
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