Ripple has submitted its civil appeal pre-argument statement, commonly referred to as Form C. One key question on everyone’s mind is whether an investment contract under Section Five of the Securities Act of 1993 must include essential elements that impose ongoing obligations on the seller and allow the buyer to demand profits from the seller’s activities. Ripple contends that these requirements do not apply to its situation.
Impact on SEC Regulation:
With regards to the above mentioned contention by Ripple, legal expert Fred Rispoli, on The Good Morning Crypto Show, said that a ruling in Ripple’s favor could significantly undermine the SEC’s regulatory framework for cryptocurrencies. If the court determines that actual contractual obligations are necessary to classify something as a security, it could overturn previous judgments and challenge the SEC’s authority.
Odds of Success:
While Rispoli estimates a 30% to 40% chance that Ripple could prevail, he notes that the SEC still appears to have the upper hand. A loss for the SEC could jeopardize its entire approach to regulating the crypto industry.
However, he said, “You have to take everything that a large company, an organization, or a political campaign says with a grain of salt. However, their arguments are strong, and Ripple is in a good position. So it’s one and the same: they’ve got good chances, strong arguments, and they’re on the right side.”
Conclusion:
As October nears its end, attention turns to the crypto market, with many traders anticipating significant movement that has yet to materialize. As we head into the weekend, the market remains relatively stagnant. The Ripple vs. SEC case is gaining momentum, with CEO Brad Garlinghouse making bold statements regarding the potential dismissal of SEC Chair Gary Gensler. This escalating conflict is drawing significant attention as both parties prepare for the next phase of the legal battle.
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