- SEC’s appeal against Ripple’s XRP ruling faces criticism for potential misunderstandings.
- Attorney Greg Beuke challenges SEC’s evidence and approach in the Ripple appeal.
- SEC’s lack of response to XRP holder affidavits highlights evidence gaps in their case.
In a recent legal development, the U.S. Securities and Exchange Commission’s (SEC) decision to file an interlocutory appeal against Ripple’s XRP has been termed a “strategic blunder” by prominent lawyer Greg Beuke. He believes the SEC has fundamentally misinterpreted Judge Torres’s ruling.
Contrary to the SEC’s understanding, Judge Torres did not conclude that sales over exchanges couldn’t be deemed investment contracts. Instead, her ruling emphasized the SEC’s failure to prove that a rational retail investor would rely on Ripple for profit gains.
The SEC’s case appeared weak, relying on selectively chosen statements from Ripple and its employees. Their inability to present evidence of any XRP holder depending on Ripple for price appreciation further weakened their stance. Moreover, their disregard for affidavits from the XRP community, presented by attorney John E. Deaton, was a notable oversight.
Beuke accentuated that the appeal process typically doesn’t allow for new evidence or arguments. This constraint puts the SEC in a challenging position, especially given their lack of substantial evidence regarding retail investor perceptions.
The 2nd Circuit, during the appeal, might resonate with the SEC’s foundational case theory. However, Judge Torres’s decision, rooted in the undisputed factual record, will stand firm, highlighting the SEC’s evidence deficit concerning retail investor understanding.
Despite the legal hurdles, Ripple and XRP’s trajectory in the crypto world remains optimistic. Their resilience, coupled with robust community backing, suggests that they are primed for growth and innovation. As the crypto landscape evolves, Ripple and XRP are set to play pivotal roles, potentially revolutionizing the industry’s dynamics.
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