The SEC is doomed to fail in its skirmish with Ripple. That’s the view of a former US Securities and Exchange Commission official, suggesting that the case will be lost due to the federal agency’s unpreparedness to fight cryptocurrencies.
Ripple with another favorable opinion
Since December 2020, the cryptocurrency world has been feverishly watching the Ripple vs. SEC case. It is crucial for the entire industry and its future fate. Luckily for Ripple, there are more and more voices indicating a high probability of winning the proceedings.
Former SEC official Joseph Hall, believes that the agency is not prepared to handle this type of case. Lack of knowledge of the market, and lack of proper preparation and willingness to understand the cryptocurrency area will, in his opinion, cause the SEC to “lose the case on the merits.”
Joseph Hall, former managing director of policy at the SEC was a guest on a popular podcast created by Tony Edward called “Thinking Crypto”. In his view, it’s not clear what the SEC is trying to accomplish in its fight. In his words:
“I’m not entirely sure what the SEC plans to prove in the XRP lawsuit. (…) Their entire regulatory project could essentially be shut down if they lose the case on the merits.”
According to Hall, many aspects of the lawsuit benefit Ripple. He points out, for example, that the SEC failed to give fair notice of the investigation. In the United States, he says, there is a legal obligation for all entities, whether individuals or corporations, to know that they are under investigation. History is full of instances where SEC investigations have been dismissed for failure to provide notice to suspected entities.
Hall is echoed by popular lawyer Jeremy Hogan, who has been monitoring the case in depth and keeping up to date on his social media. He points to a similar predicament for the SEC, while noting that Ripple’s line of defense is strong enough that it should save the XRP token issuer from the fire.
A Ripple win is a win for the entire sector
Recall that Ripple was sued by the SEC for allegedly trading XRP tokens as securities without notifying the SEC and undergoing the proper procedures for doing so.
The resolution of the litigation could be crucial for many other tokens on the market. If the federal regulator wins in court, it could trigger a number of new proceedings. Ripple’s victory, on the other hand, will remove the SEC from the crypto world, at least for a while.