The SEC has already dismissed charges against Ripple CEO Brad Garlinghouse and executive chair Chris Larsen, while the retail XRP sale ruling also went against the regulator.
According to Bill Morgan, a legal expert closely monitoring the ongoing legal battle between the United States Securities and Exchange Commission (SEC) and Ripple, the SEC’s chances of winning their appeal appear exceedingly slim. Morgan argued in a social media post on X (formerly known as Twitter) that there are no glaringly apparent errors that favor the SEC. Particularly, he pointed out that Ripple seems to have the upper hand regarding ODL (On-Demand Liquidity) sales, as they fail to meet at least two key aspects of the Howey test. He also noted that the SEC’s odds of a successful appeal against Ripple stand at a mere 3%.
Morgan’s assessment came in response to data shared by Jeremy Hogan, a prominent attorney, who provided government statistics on appeal success rates across various types of legal disputes. According to the data, the SEC’s probability of winning the appeal against Ripple stands at a modest 14.2%.
After a protracted three-year legal battle against Ripple, the SEC received an unfavorable verdict from a judge who ruled that the sale of XRP on cryptocurrency exchanges did not violate securities laws. This judgment marked a significant victory for Ripple, which had suffered a substantial loss of business during the SEC’s legal pursuit, leading to the delisting of XRP from major cryptocurrency exchanges.
Furthermore, the SEC’s efforts to appeal this judgment were in vain, as Judge Analisa Torres, on October 4, determined that the regulatory body failed to demonstrate the existence of critical legal issues or substantial grounds for divergent opinions on the ruling.
In a subsequent development on October 19, the SEC opted to drop all charges against Ripple CEO Brad Garlinghouse and executive chair Chris Larsen, marking yet another major victory for Ripple and its leadership.
Stuart Alderoty, the Chief Legal Officer of Ripple, labeled the SEC’s actions as a “surrender,” and Ripple’s official statement characterized the SEC’s move as a “stunning capitulation.” Morgan further noted that with the dismissal of the remaining charges, a trial slated for next year is no longer on the horizon. Instead, he anticipated that the court might deliver a “final judgment (probably) sometime next year.”
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