Prominent XRP legal expert Bill Morgan acknowledges Rep. Emmer for calling out the Securities and Exchange Commission (SEC) regarding the Ripple lawsuit.
Pro-XRP lawyer Bill Morgan has recognized House Majority Whip Tom Emmer’s effort in calling out the United States SEC over the Ripple lawsuit.
US Rep Bashes SEC Chair
For context, Emmer took to X to announce that the House passed his nonpartisan appropriation amendment without any opposition.
.@GaryGensler is as ineffective as he is incompetent. Fortunately, my nonpartisan appropriations amendment to reign in SEC enforcement abuses against the digital asset industry passed the House today with no opposition.
Congress will hold unelected bureaucrats accountable. pic.twitter.com/TGaaW8I0Eu
— Tom Emmer (@GOPMajorityWhip) November 8, 2023
It is worth mentioning that Emmer’s bill seeks to prohibit the US SEC from pursuing enforcement action using taxpayer money until Congress authorizes regulatory jurisdiction.
The pro-crypto lawmaker bashed SEC chairman Gary Gensler’s stringent approach to crypto regulation, emphasizing that the SEC boss is “ineffective and incompetent.”
Per Emmer, although the SEC does not have Congress authorization, the commission has continued to expand its jurisdiction over the crypto industry using its preferred regulation-by-enforcement approach.
US Rep Says Ripple Case Is Outside SEC Jurisdiction
The Majority Whip said SEC Director of Enforcement Gubir Grewal admitted that the commission pursues enforcement actions against entities outside its jurisdiction.
In this regard, Rep. Emmer mentioned the Ripple lawsuit as one of the SEC’s extra-jurisdictional enforcement actions, which saw the commission allege that XRP is a security.
“In July, the Southern District of New York (SDNY) sided against the SEC, asserting that XRP is not a security,” Emmer added.
Pro-XRP Lawyer Reacts
Expectedly, Rep. Emmer’s recent comment stirred reactions among XRP enthusiasts, with some people applauding the House Majority Whip for calling out the SEC.
Commenting, Attorney Morgan stated that a US congressman has finally called out the SEC for losing the argument regarding the security status of XRP.
According to Morgan, Ripple CEO Brad Garlinghouse recently disclosed that the company spent over $150 million defending the SEC case. As a result, the legal expert raised a pertinent question to ascertain how much taxpayer money the SEC spent throughout the Ripple lawsuit.
Finally someone from Congress came forward and officially called out the SEC for claiming XRP is a security & made it clear the SEC lost on that issue. Garlinghouse in the last day has disclosed Ripple’s legal bills for the case are $150 million. What did it cost the US taxpayer? https://t.co/BURz9KNLrE
— bill morgan (@Belisarius2020) November 8, 2023
SEC Hoping to Get Significant Amount as Penalties
The SEC has not commented on the expenses it incurred in the legal battle. With the court ruling that Ripple’s institutional sales of XRP worth over $770 million violated the law, the SEC hopes to get a massive chunk of the amount as penalties.
However, top legal experts like John Deaton and Jeremy Hogan speculate that Ripple could pay a lower fee by exempting its legitimate business expenses from the anticipated $770 million fine.
Notably, the penalty phase of the lawsuit is set to commence soon. As reported earlier, the parties have until the end of today to propose a briefing schedule for the remedies proceeding.
If the SEC and Ripple fail to reach an agreement, they shall jointly ask the court to schedule the briefing.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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