A recent tweet by attorney Jeremy Hogan has sparked renewed optimism within the Ripple community. Hogan highlighted that Judge Analisa Torres, who is presiding over the ongoing Ripple v. SEC lawsuit, previously ruled against the U.S. Securities and Exchange Commission (SEC) in a case involving global mining group Rio Tinto.
The Ruling Against the SEC
In his tweet, Hogan drew attention to the fact that Judge Torres had ruled against the SEC in a key issue concerning the Rio Tinto case. He added that the appellate court upheld her decision, which bodes well for Ripple in its ongoing legal battle with the regulatory body. However, Hogan also noted the lengthy duration of the Rio Tinto case, hinting at the potentially long road ahead for Ripple.
In the Rio Tinto case, Judge Torres found that “scheme liability does not exist when ‘the sole basis for such claims is alleged misrepresentations or omissions.’” Her decision aligned with precedent from the Second Circuit Court of Appeals, which maintained that misstatements and omissions alone were insufficient grounds for scheme liability under Rule 10b-5(a) and (c).
Optimism in the Ripple Community
The revelation that Judge Torres has ruled against the SEC in the past has sparked optimism among Ripple supporters. They believe that her previous decision might be indicative of a favorable outcome for Ripple in the current lawsuit. The case has been closely watched by the crypto community, as the outcome could have far-reaching implications for the industry, especially in the United States.
The SEC filed a lawsuit against Ripple Labs in December 2020, alleging that the company had conducted an unregistered securities offering by selling its native digital asset, XRP. Ripple has been fighting the lawsuit since then, arguing that XRP is not a security but rather a digital asset and that the agency’s actions have caused significant harm to the XRP market.
The SEC has been increasing its regulatory scrutiny over crypto and crypto-related firms in America since the failure and bankruptcy of FTX, which used to be the world’s second-largest crypto exchange, in 2022.
The ongoing Ripple-SEC legal battle has seen numerous twists and turns, with both sides scoring minor victories and setbacks. While the legal process may be lengthy and complex, the latest revelation has undoubtedly provided a boost to Ripple’s morale as it continues to fight for its position in the American cryptocurrency space.