In the ongoing legal battle between Ripple and the US Securities and Exchange Commission (SEC), both parties have recently submitted a schedule for discovery and briefing to Judge Torres. However, attorney Jeremy Hogan has pointed out an intriguing development that could potentially benefit Ripple in the case.
Hogan drew attention to a strategic precedent that may work in Ripple’s favor, referencing the Morrison v. National Australia Bank Ltd. case adjudicated by the US Supreme Court. He highlighted the significance of this case, particularly in relation to its implications for the application of US securities laws outside of the United States. Hogan specifically mentioned a case involving Changpeng Zhao and Binance, where the court’s decision restricted the reach of US securities laws outside of the US. He emphasized that this decision could ultimately help Ripple in its legal battle against the SEC.
Adding another layer of complexity to the legal intricacies, Hogan also dissected the practical implications of the Supreme Court’s decision, noting that it suggests Ripple’s sales must have been in the US or at least on a US exchange. This raises questions about the SEC’s ability to assert extraterritorial jurisdiction in the case, highlighting the importance of transaction location in the application of US securities laws.
Furthermore, Hogan also pondered the potential international implications of the SEC’s case against Ripple. He suggested that if the SEC overreaches, it could provoke an international response similar to that seen in the Morrison case. Hogan raised the possibility of countries like the UK, France, and Australia filing Amicus Briefs, similar to their involvement in the Morrison case, should the SEC attempt to extend its reach outside of the US.
The discussion has also involved input from James Farrell, General Counsel at AscendEX and former SEC lawyer. Farrell noted that Judge Torres has previously considered jurisdictional issues in Ripple’s case, referencing a prior denial of Ripple’s argument at the motion to dismiss. In response, Hogan hinted at the possibility of the path ahead involving a settlement, which could potentially expedite the legal process.
Meanwhile, Ripple CEO Brad Garlinghouse has suggested that the SEC is not currently seeking a settlement, indicating a broader governmental reluctance to engage with cryptocurrency. Garlinghouse also revealed that US banks are still hesitant to engage with crypto despite Ripple’s series of legal victories over the SEC. He pointed out that even though Ripple has won the case, the US government and the Office of the Comptroller of the Currency (OCC) are still perceived as hostile towards crypto, which has contributed to the reluctance of US banks to engage meaningfully with cryptocurrencies.
At the time of writing, XRP is trading at $0.6588. The ongoing legal battle between Ripple and the SEC continues to have implications for the cryptocurrency industry at large, with various legal, regulatory, and international issues at play. As the legal proceedings progress, the outcome of the case could have significant implications for how US securities laws are applied and enforced in the context of cryptocurrencies and related transactions.
The featured image comes from CryptoLaw / YouTube, and the chart is from TradingView.com. The developments in the legal battle between Ripple and the SEC are closely watched by the cryptocurrency community and have the potential to shape the regulatory landscape for the industry as a whole.