Bill Morgan, a lawyer and prominent supporter of XRP, expressed doubts about the U.S. Securities and Exchange Commission’s (SEC) chances of success in its ongoing appeal against Ripple. The SEC is appealing a ruling by Judge Analisa Torres, who declared in July 2023 that XRP, the native token of Ripple, is not a security. The agency is seeking to overturn this decision, particularly focusing on Ripple’s programmatic sales of XRP.
Bill Morgan’s Take on SEC Appeal Against Ripple
On X Morgan voiced his, stating that the SEC is trying to “convince a court in its appeal that Judge Torres got it wrong” by arguing that programmatic buyers of XRP expected profits from the blockchain company’s efforts. He pointed out that the SEC’s own expert testimony on this matter was not allowed and that there is a significant lack of evidence supporting the agency’s claims.
And yes, you can assume I do not think the SEC will succeed in an appeal on Ripple’s programmatic sales of XRP https://t.co/4HMQjAP2uX
— bill morgan (@Belisarius2020) October 8, 2024
According to Morgan, “the evidence before the court of many actual investors was that they did not rely on Ripple’s efforts or even knew about Ripple.” He further emphasized that the SEC’s argument is built on a hypothetical legal fiction, rather than real investor behavior. “No reasonable investor can expect profits from Ripple’s efforts,” Morgan noted.
He added that the SEC will nonetheless attempt to argue that a hypothetical investor from 2019 may have based their XRP purchase on a blog post from 2014. Moreover, Morgan confidently stated, “you can assume I do not think the SEC will succeed in an appeal on Ripple’s programmatic sales of XRP.”
Another Lawyer Weighs In
Advertisement
Fred Rispoli, another lawyer who supports XRP, also weighed in on the SEC’s appeal, focusing on the agency’s emphasis on programmatic sales. According to Rispoli, these sales, which refer to the firm selling XRP on exchanges, are critical to the case.
He further warned that a victory for the SEC in this area could have broader implications, potentially leading to lawsuits against major crypto exchanges like Coinbase and Kraken. “As soon as they win, they’re filing that case and the Coinbase case and the Kraken case,” Rispoli cautioned in an interview with Tony Edward.
Despite the SEC’s legal strategy, Rispoli remained cautiously optimistic about the blockchain firm’s chances of success. He predicted a “70-30 in Ripple’s favor,” depending on the panel of judges assigned to the case. However, he acknowledged that the outcome could vary significantly if the judges are unbiased.
For context, the SEC filed its formal notice of appeal on October 2, continuing the legal battle over whether XRP should be classified as a security. However, legal experts believe that the agency should have accepted the penalty imposed on the Web3 firm instead of appealing. Currently, the chances of the regulator’s win are slim and if Republican presidential candidate Donald Trump wins the November elections, the case could be worsened as he has vowed to fire SEC Chair Gary Gensler.
Advertisement
Also Read: Ripple: When Will XRP Price Recover To Hit $1?
