Ripple vs SEC lawsuit is set to proceed in the U.S. Second Circuit Court of Appeal as the government agency filed Form C. Surprisingly, the US Securities and Exchange Commission has reinstated securities law violation charges against Ripple executives Brad Garlinghouse and Chris Larsen. Former SEC lawyer believes the remaining claims against them are still valid for appeals.
Ex-SEC Reveals Why Appeal Is Valid Against Ripple Executives
Ripple Labs and the US SEC take the long-running lawsuit to the U.S. Second Circuit Court of Appeal. Lawyers and experts claimed that the appeal has extended the case by another year.
The regulator appealed the summary judgment on XRP sales by Ripple, XRP distribution to employees and others by the company, and XRP sales on exchanges by CEO Brad Garlinghouse and Executive Chairman Chris Larsen.
In response to the buzz surrounding the SEC dragging Garlinghouse and Larsen into the lawsuit again, former SEC lawyer Marc Fagel reacted to it. He asserts that the SEC dropped charges of aiding & abetting Ripple’s unregistered institutional sales, but other claims against executives were not dropped.
Another expert on the XRP lawsuit Sherrie said the case against Brad Garlinghouse and Chris Larsen had been a stipulation on dismissal.
“The stipulation was that Brad and Chris’s individual sales were programmatic ones- which the judge determined were not securities offerings. If the Appellate Court overturns Torres then the stipulation allows for those guys to be roped right back in,” she added.
Last week, Ripple CLO Stuart Alderoty shared the good news with the community that “XRP is not a security” as the government agency did not appeal it. He added that XRP has gained more clarity as the “decision stands as the law of the land.”
Ripple will submit their Form C on cross-appeal against the SEC by this Friday.
Will Cross Appeal Fuel Upside Momentum in XRP Price?
XRP price is currently trading at $0.525, down 5% in a week. The 24-hour low and high are $0.512 and $0.531, respectively. However, the trading volume saw a 7% increase over the last 24 hours.
In the derivatives market, XRP buying remains mixed ahead of Friday’s crypto expiry. Total XRP futures OI fell more than 2% in the last 24 hours to 1.40 billion worth $743 million, as per Coinglass data.
However, the overall sentiment remains high as expert predicts a rally in XRP price to hit as high as $16 and surpass Ethereum.
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