Attorney Fred Rispoli has highlighted six major reasons why the trial between the SEC and Ripple executives may not hold.
Prominent cryptocurrency lawyers have been speculating on the possible outcome of the SEC v. Ripple trial. For context, the upcoming trial aims to resolve the SEC’s charges against Ripple executives- Brad Garlinghouse and Chris Larsen.
Upcoming SEC v. Ripple Trial
Notably, the SEC charged Garlinghouse and Larsen with aiding and abetting Ripple in distributing XRP as an unregistered security. Although the court has already issued a summary judgment, it scheduled the case against Ripple execs for a jury trial.
It bears mentioning that the trial is expected to commence in Q2 2024, and the parties have already provided the court with their availability for the proceeding.
6 Reasons Why the Trial Won’t Happen
However, top crypto lawyers, including Fred Rispoli, speculate that the SEC v. Ripple trial will not happen.
“Seeing many out there speculate the Brad Garlinghouse Chris Larsen trial won’t happen. For many reasons, I agree,” Attorney Rispoli said.
#XRPCommunity
Seeing many out there speculate the @bgarlinghouse @chrislarsensf trial won't happen. For many reasons, I agree. First, it's painfully obvious that suing those two initially was only to pressure @Ripple into a weak settlement position. Two, imagine Hinman…1/5— Fred Rispoli (@freddyriz) August 24, 2023
To bolster this speculation, Attorney Rispoli highlighted six reasons why the SEC v. Ripple trial will not happen.
Firstly, the pro-XRP lawyer pointed out that the SEC initially sued Garlinghouse and Larsen as a bargaining chip for a possible settlement.
He noted that the regulatory agency sued the execs to pressure Ripple into accepting a weak settlement position. However, the court has issued a summary judgment decision, and Ripple won two-thirds of the SEC’s claims.
Secondly, Attorney Rispoli said the possibility of former SEC execs, including William Hinman and Jay Clayton, taking the witness stand in the case could be another reason why the trial will not happen.
He stated that both SEC execs could be tried for their roles in Donald Trump’s administration before a jury in New York.
Thirdly, Attorney Rispoli stressed that it may be difficult for the SEC to prove its institutional sales’ recklessness charges against Garlinghouse and Larsen. Per Rispoli, Ripple execs could easily use the court’s ruling on programmatic sales of XRP to counter the argument.
Recall that while the court ruled that Ripple’s past sales to institutional investors were securities, it found that the company’s programmatic sales were not.
For the fourth reason, Attorney Rispoli said the SEC’s evidence of Ripple’s domestic versus international sales of XRP is weak.
SEC Restructuring Could Affect Trial
Another reason why Attorney Rispoli does not think the SEC is in a good position to embark on a trial against Ripple execs is the agency’s recent restructuring.
He noted that the securities regulator recently reorganized the majority of its trial team. As reported, the SEC filed a motion to withdraw one of its senior trial counsels, Pascale Guerrier.
Lastly, the pro-XRP lawyer stressed that the SEC has been involved in back-to-back trials against other entities. He hinted that it may be difficult for the SEC to immediately commence another trial against Ripple execs.
SEC Has No Bargaining Chip If Court Denies Appeal
Attorney Rispoli said the SEC understands the difficulty in winning the trial, which explains why it has focused its attention on filing an interlocutory appeal.
He added that the SEC would have no other bargaining chip if the court denies its motion to file the appeal.
“The SEC went all in and if this Hail Mary doesn’t work, well, it will be interesting to see exactly how it will try to structure its loss,” he added.
…then must jump immediately into this trial! No wonder SEC is going for the appeal. It has no bargaining chips left if J. Torres denies it. SEC went all in and if this Hail Mary doesn't work, well, it will be interesting to see how exactly SEC tries to structure its loss. 4/5
— Fred Rispoli (@freddyriz) August 24, 2023
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