Legal experts are predicting a challenging road ahead for the United States Securities and Exchange Commission (SEC) in its appeal against Ripple in the ongoing lawsuit. Attorney Bill Morgan, closely monitoring the case, suggests the SEC has a very slim chance of success, estimating it at only 3%.
Challenging Appeal for the SEC
Morgan’s assessment stems from the absence of any clear appellable error, except in favor of Ripple regarding sales that do not meet the necessary criteria of the Howey test. He underscores the daunting odds of the SEC’s appeal, emphasizing a mere 3% likelihood of success.
This analysis follows data shared by prominent attorney Jeremy Hogan, who presented government statistics on the success rates of appeals in various types of legal disputes. According to this data, the SEC faces a 14.2% chance of winning the appeal against Ripple.
Ripple’s Legal Triumph
The SEC’s struggle against Ripple lasted for three years, culminating in a judge’s ruling that the sale of XRP on cryptocurrency exchanges did not violate securities laws. This marked a significant victory for Ripple, which had faced a significant setback as major crypto exchanges delisted XRP during the SEC lawsuit.
Notably, the SEC also faced a setback when an appeal against the judgment was rejected. On October 4, Judge Analisa Torres ruled that the SEC had not met the burden of demonstrating substantial grounds for differences of opinion on the initial ruling.
Dismissal of Charges
Today was an even better day.
In all seriousness, Chris and I (in a case involving no claims of fraud or misrepresentations) were targeted by the SEC in a ruthless attempt to personally ruin us and the company so many have worked hard to build for over a… https://t.co/YsQxewFnj9
— Brad Garlinghouse (@bgarlinghouse) October 19, 2023
Subsequently, on October 19, the SEC decided to dismiss all charges against Ripple CEO Brad Garlinghouse and executive chair Chris Larsen, further strengthening Ripple’s position. Ripple‘s Chief Legal Officer, Stuart Alderoty, labeled this move by the SEC as a “surrender,” and Ripple officially termed it a “stunning capitulation.”