In a recent Twitter thread, well-known XRP community lawyer Fred Rispoli shed light on the ongoing legal battle between Ripple and the United States Securities and Exchange Commission (SEC). Insights from Rispoli suggest that the much-anticipated trial between Ripple executives Brad Garlinghouse and Chris Larsen and the SEC may never come to pass.
Ripple and SEC Trial ‘Won’t Happen’
Rispoli’s claim revolves around the SEC’s original strategy.he pointed out’, “Obviously, the initial prosecution of these two men was only to force Ripple into a weak settlement position. This suggests that the SEC’s move may have been more tactical than substantive, aimed at putting Ripple in a weak position rather than genuinely seeking justice.
Additionally, Rispoli highlighted the potential for bringing former SEC officials William Hinman and Jay Clayton to the witness stand. While the Hinman documents exposed dubious practices and potential corruption at the Securities and Exchange Commission (SEC), former SEC Chairman Jay Clayton may have an interest in protecting his own interests. Rispoli mused, “As unfair as it may be, personally, I would be happy to link these two men to a New York City jury for their role in the ‘Trump administration. group!”
The attorney also spoke about the inherent challenges the SEC will face in proving its case. For example, the SEC’s task of proving reckless conduct in institutional sales becomes extremely challenging when Ripple can be disproved by programmatic sales (which are generally considered aboveboard). Additionally, Rispoli noted that the SEC’s distinction between domestic and international sales is weak, suggesting their evidence in this regard may not stand up in court.
Rispoli pointed to the recent reshuffle of the SEC’s trial team, which added to the SEC’s woes. This internal shift often indicates a lack of preparation or confidence. Additionally, the SEC’s back-to-back trial schedule could strain its resources, making it unlikely that it will be fully prepared for a high-stakes trial against Ripple.
Rispoli’s analysis of the SEC’s stance was summed up in one poignant observation: “The SEC is all in, and if this Hail Mary doesn’t work, it will be interesting to see how exactly the SEC tries to make up for its losses.” Here’s the picture: An agency may have gone too far and is now scrambling to find a face-saving exit.
When is the interlocutory appeal decided?
Rispoli’s post also sparked a series of questions from the XRP community seeking further clarification on the unfolding legal drama.
A user asked about the estimated timeline for the appeal, and Rispoli responded that previous decisions on interlocutory appeal requests had taken Judge Torres four to six weeks. “It doesn’t happen that many times, but in my opinion, it’s going to be a good range,” the lawyer said.
Another user raised questions about the possibility of the SEC dropping some cases. Rispoli clarified the complexities of the process, saying: “Yes, but the SEC has to get the court’s permission to do so. It would be a disgrace if the SEC “dropped” that claim. I’m not sure it Humble, but I bet we can’t find a situation where it’s happened in a similar situation before.”
Finally, when asked about the potential financial penalties Ripple could face, Rispoli acknowledged the complexity of the issue and said he currently has no solid answers. There is a figure of more than $700 million floating around, “but this will lead to significant litigation during the remedial phase of the case.”
At press time, XRP was trading at $0.5098 after breaking below its 200-day moving average.
Featured image from BuyUCoin, chart from TradingView.com