Ripple Labs and SEC could be getting closer and closer to a loss. Layton of Forbes says that the SEC realized that it had fallen into its own trap. If the SEC goes to the Supreme Court, it will set a precedent that makes the Howey Test less useful.
The US Securities and Exchange Commission (SEC) may be getting closer to losing its case against Ripple Labs, which makes a payment protocol. All things considered, the ruling could make it much harder for the SEC to regulate crypto in the US.
Roslyn Layton, a writer for Forbes, posted the following article on her Twitter account:
@Curt_Levey @JWVerret on Future of #sec #ripple #CryptoNews #XRPArmy #XRPCommunity https://t.co/iozcjJPQtD
— Roslyn Layton, PhD (@RoslynLayton) October 30, 2022
Layton says that as soon as the SEC filed the case, they realized they had fallen into their own trap. She also said that tens of thousands of XRP users who had nothing to do with Ripple but were also hurt by the government’s actions were also dragged into the legal battle.
The crypto firm of John E. Deaton, CryptoLaw, tweeted:
The SEC is facing a bruising defeat against the San Francisco-based enterprise blockchain innovator Ripple. The verdict could drastically limit the SEC’s authority to regulate crypto in the U.S. If that’s how it ends, it will have been a self-inflicted disaster from the start
Ripple finally got the Hinman documents at the beginning of this month, after fighting for them for more than 18 months. The documents are still secret for now, but they are seen as a huge win for the XRP team.
But legal experts aren’t sure if the decision will make Ripple’s chances of winning the lawsuit better or not. Also, a law professor who knows about the case says, “It’s possible that the documents Ripple got don’t help their case.”
According to the news, if the SEC takes its case to the Supreme Court, it will not only lose, but it will also likely set a broad precedent that will limit or get rid of the Howey Test on crypto, which goes against the criteria from 1946.
The post Could the SEC’s loss in the XRP lawsuit be getting closer? first showed up on Coin Edition.
