A cryptocurrency law expert said that the SEC's decision to appeal RippleLab's complaint was a big mistake.
The SEC first filed a lawsuit against RippleLab in December 2020, alleging that the company was selling the crypto asset #XRP as unregistered securities.
In October 2023, a judge ruled that only institutional-level sales of XRP constituted a sale of securities, but not retail sales. However, the SEC announced last week that it would appeal the ruling, and Ripple's legal counsel Stuart Alderoti said the SEC is simply expanding its long-standing war on the cryptoasset industry.
In a new thread on social media platform X, lawyer Jeremy Hogan said that the SEC's decision to appeal the ruling was a serious risk-benefit mistake.
the SEC made a huge mistake: it will appeal the ruling on programmatic sales, and if they #win , they will get more money from #Ripple and won't be able to protect anyone.
Ripple raises a blue sky issue, and if it wins, the SEC's ability to regulate the entire #cryptocurrency sector will essentially be destroyed; the SEC is not good at calculating risk (which makes it a bad stock trader); and the SEC's ability to regulate the entire cryptocurrency sector is essentially destroyed.
the Blue Sky Act is designed to protect the public from unauthorized sales of securities by requiring companies to register their offerings for sale unless there is an exemption.
Hogan also argues that the SEC's chances of success are slim.
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