A former federal prosecutor-turned-CEO of a cryptocurrency-focused venture capital fund will be surprised if U.S. securities regulators immediately appeal their partial defeat in the battle against Ripple, says U.S. securities regulators Trading commissions currently benefit from a lack of legal clarity.
On July 13, Judge Analisa Torres granted a partial summary judgment in favor of Ripple Labs regarding XRP’s security status. At the time, some commentators warned that the SEC might appeal.
However, in a July 15 Twitter post, Haun Ventures CEO Katie Haun explained The securities watchdog is likely to remain silent as it benefits from “current confusion” and a failure to appeal could jeopardize its future enforcement actions.
Some non-legal advice thoughts on Ripple’s decision, including two main takeaways:
1/ The courts have drawn reasonable boundaries, and overall, this is a good outcome for the industry. For other lawsuits with the SEC, we believe the Supreme Court’s “significant issues doctrine” will play a greater role. …
— Kathleen Haun (@katie_haun) July 15, 2023
“Anything is possible, but an immediate appeal seems unlikely because the agency would have to ask the court to separate this decision from the trial portion, and I doubt the SEC really wants legal clarity,” Haun said.
“The Commission benefits from the current confusion, and losing an appeal on these issues would jeopardize its entire enforcement agenda. So I would be surprised if the SEC tried to appeal now.”
Haun is just the latest commentator to share that sentiment.
On July 15, Ripple Labs CEO Brad Garlinghouse also believed that the SEC may “take years” to appeal. He added that the SEC’s appeal will only reinforce Judge Torres’ decision that XRP is not a security.
In a video posted on YouTube the same day, US attorney and Ripple commentator Jeremy Hogan stated that he believe The SEC will appeal after the trial between the SEC and Ripple is scheduled to end in early 2024.
The U.S. Securities and Exchange Commission (SEC) is currently suing cryptocurrency exchanges Binance and Coinbase for violating securities laws. Some believe that the recent Ripple case ruling, while not a binding precedent, could have an impact on the outcome of the case.
related: Former SEC Official Says Ripple’s Decision Is “Troublesome on Multiple Fronts”
Meanwhile, many cryptocurrency commentators and lawmakers have called on Congress to act on the recent ruling and provide legal clarity to cryptocurrencies.
Brian Quintenz, former member of the Commodity Futures Trading Commission, is currently the head of policy at the crypto venture capital fund a16z, pointed out The recent Ripple court ruling “only creates more uncertainty for entrepreneurs and builders.”
U.S. Senator Cynthia Lummis said the ruling underscored the urgent need for Congress to create a clear and comprehensive regulatory framework for the cryptocurrency industry.
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