Preserving Ripple's Success: How Judge Torres Ensures an Upheld Outcome Beyond Higher Court Rulings – Coinpedia Fintech NewsJuly 19, 2023
Renowned corporate attorney and co-founder of DLx Law, Lewis Cohen, poured cold water on speculation that the recent ruling in the SEC v. Ripple case could be overturned. Cohen confidently declared that such predictions are nothing more than “sore losers” grappling with a resounding defeat.
Debunking the Doubts
During a Crypto-Law interview, host John Deaton sought Cohen’s expert opinion on the ongoing chatter about the Ripple case verdict. Some legal experts have cast doubt on Judge Analisa Torres’ decision, questioning its consistency and predicting an eventual reversal.
When Deaton put these doubts to Cohen, the attorney dismissed them as “balderdash.” According to Cohen, critics making these projections are simply “grasping at straws,” seeking to soften the blow of SEC’s significant loss against Ripple.
Adding weight to Cohen’s view, Attorney Deaton also expressed confidence in the durability of Judge Torres’ decision. Responding to Fox Business’ Senior Correspondent Charles Gasparino, Deaton countered securities lawyers’ claims that Ripple would lose on appeal. He noted how these same lawyers had prematurely celebrated a total victory for the SEC, only to see Ripple and the SEC share a split win and XRP declared a non-security.
Judge Torres’ Decision Under Fire
Judge Analisa Torres’ ruling in the SEC v. Ripple case has become a hotbed of controversy. Despite the heated debates, Cohen firmly backed the ruling in his Crypto Law interview. However, a section of the legal fraternity, including securities lawyers Marc Fagel and John Reed Stark, have criticized the ruling as inconsistent.
Judge Torres found Ripple’s direct sales of XRP to institutional clients to be securities, citing that these investors expected Ripple to use the funds to enhance the XRP ecosystem and boost the asset’s price. However, she ruled that Ripple’s programmatic XRP sales were not securities as retail investors didn’t expect to profit directly from Ripple’s actions.
Critics argue this dual classification of XRP makes the ruling unstable. Stark even suggested in a LinkedIn analysis that the ruling “resides on shaky ground” and expects it to be reversed on appeal. Fagel concurs, believing the SEC has a solid chance of getting the decision on programmatic XRP sales overturned.
However, the SEC has not yet confirmed its next steps regarding the ruling, and while SEC Chair Gary Gensler expressed disappointment with the verdict, he did not reveal whether an appeal is in the cards. For now, Ripple’s court victory remains firm.
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