The US Securities and Exchange Commission (SEC) has been speculated to drag Ripple Labs’ founders into the regulator’s long-running legal battle against their company. However, pro-XRP legal expert Fred Rispoli has outlined why this is unlikely.Rispoli stated that the SEC is unlikely to pursue a trial against Ripple’s CEO Brad Garlinghouse and Executive Chairman Chris Larsen for “many reasons.” The agency had accused Ripple Labs of selling unregistered securities back in 2020, but never brought an action specifically against the duo.Rispoli believes that the SEC only threatened a lawsuit against Garlinghouse and Larsen to pressure the company into a “weak settlement position” and did not intend to maintain a suit against them. He noted that the trial was also unlikely as the SEC would not want a situation where its credibility is questioned.Rispoli also stated that the SEC will find it hard to prove that the executives were reckless in terms of institutional sales as they can raise a defense that these sales were programmatic. The lawyer further highlighted that the SEC doesn’t have sufficient evidence to differentiate between domestic and international sales when putting forward its case.Rispoli noted that the regulator just reorganized most of its trial team, which could signify that it doesn’t have enough manpower to handle an additional lawsuit involving Garlinghouse and Larsen. The SEC had moved to file an interlocutory appeal following Judge Analisa Torres’ ruling in favor of Ripple Labs, which Rispoli believes is a “Hail Mary” move from the Commission as it had no “bargaining chips” left if the appeal had not been approved.According to pro-XRP legal expert Fred Rispoli, the US Securities and Exchange Commission (SEC) is unlikely to pursue a trial against Ripple’s CEO Brad Garlinghouse and Executive Chairman Chris Larsen. Rispoli believes that the SEC only threatened a lawsuit against the duo to pressure the company into a “weak settlement position” and did not intend to maintain a suit against them. He also stated that the SEC will find it hard to prove that the executives were reckless in terms of institutional sales and does not have sufficient evidence to differentiate between domestic and international sales. The regulator recently reorganized most of its trial team, which could signify that it doesn’t have enough manpower to handle an additional lawsuit. The SEC had moved to file an interlocutory appeal following Judge Analisa Torres’ ruling in favor of Ripple Labs, which Rispoli believes is a “Hail Mary” move from the Commission.
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 🇸🇬 |
| Sentiment | neutral |
| Relevance Score | 8 |
| People | Brad Garlinghouse, Chris Larsen, William Shihara, Jay Clayton, William Hinman |
| Companies | SEC, Ripple Labs, Bittrex, US Securities and Exchange Commission, Tradingview.com |
| Currencies | XRP, Bitcoin, Ethereum |
| Securities | None |
