Ripple’s Chief Legal Officer, Stuart Alderoty, has shared his insights on the potential outcome of the ongoing battle between Ripple and the U.S. Securities and Exchange Commission (SEC). According to Alderoty, the U.S. Second Circuit Court of Appeals will either affirm Judge Analisa Torres’s decision or expand upon her ruling. He emphasized that while the SEC hopes for a remand, this possibility remains unlikely, a distant hope for the regulatory body after their previous mistakes.
The 2nd Cir. will either affirm Judge Torres or expand her ruling. The best the SEC can hope for (and it’s a remote hope) is a remand.
But during the SEC’s failed ‘interlocutory’ appeal, Judge Torres made it clear that ‘Howey’ and all of Ripple’s defenses, including Fair Notice,… pic.twitter.com/TWDlJ3bE4d
— Stuart Alderoty (@s_alderoty) October 20, 2024
Ripple’s Fair Notice Defense Could make a Return
Alderoty pointed out that during SEC’s failed interlocutory appeal, Judge Torres made it clear that her initial ruling stood firm including the significant Fair Notice argument.
The Fair Notice doctrine questions whether a person of “ordinary intelligence” could have understood what was legally prohibited. If the case were to be remanded, this defense, along with other arguments can resurface in the court.
Advertisement
SEC might find itself in an awkward position when they suggest that Judge Torres did not meet the standard of “ordinary intelligence” when she ruled against them.
Alderoty in the post, proceeded to add a layer of light-heartedness to the situation by comparing the SEC’s pursuit of Ripple to Herman Melville’s Moby Dick, casting SEC Chair Gary Gensler as the obsessive Captain Ahab. He also went on to compare the situation to the court room comedy My Cousin Vinny, further illustrating the twists and unexpected turns the case has taken.
Awaiting the Second Circuits Decision
The next key development is with the U.S. Second Circuit Court of Appeals. As Alderoty highlighted, the court could either affirm, or expand Judge Torres ruling which would affect the regulatory framework of cryptocurrencies. The SEC’s chances of complete reversal are slim but possibilities of remand remain on the table.
For now, all eyes will be on Ripple as it continues to defend itself against SEC’s claims. This case is set to have far-fetched implications, not just for Ripple, but for future regulation of digital assets in the U.S.
Advertisement
Also Read: Binance Ex-CEO CZ Warns of Fake Profile Scams
