The former director of internet enforcement for the US Securities and Exchange Commission (SEC) predicted a “big win” for the SEC in the Terraform Labs case. The former SEC official also expects District Judge Jed Rakoff to continue overruling District Judge Analisa Torres's ruling regarding Ripple and XRP.
Stark: 'Expect a big win for the SEC'
Former SEC official John Reed Stark shared several predictions regarding the regulator's action against crypto firms in a lengthy post on social media platform X on Monday. Stark is currently the president of cybersecurity company John Reed Stark Consulting. He founded and served as chief of the SEC's Office of Internet Enforcement for 11 years, and was also an enforcement attorney for the SEC for 15 years.
The former SEC official wrote:
“Prediction: Expect a big win for the SEC in the SEC/Terra lawsuit and a mild (but harsh) rebuke of the recent SEC/Ripple decision.”
Stark noted that both the SEC and Terraform Labs “have now filed summary judgment motions, each seeking an early victory on whether crypto tokens are securities.”
In the SEC's lawsuit against Terraform Labs and co-founder Do Kwon, Judge Jed Rakoff of the Southern District Court of New York (SDNY) overturned District Judge Analisa Torres's ruling regarding Ripple and XRP.
“The court rejects the approach recently adopted by another district judge in a similar case, SEC v. Ripple Labs Inc.,” Judge Rakoff said in August.
The SEC's former director of internet enforcement continued:
“In my view, renowned securities law expert Judge Jed Rakoff, who is presiding over the SEC/Terra matter, is doing his best to (politely) label “misguided” Judge Analisa Torres's Ripple decision.
Stark believes that among SEC attorneys, Judge Rakoff is “arguably the most respected and experienced securities law jurist not only in the SDNY but perhaps in the entire U.S. federal court system.” .
“The clear reality is that Judge Rakoff overruled Judge Torres and it seems inevitable that he will do so again, not just at the summary judgment stage but at any time. future when it comes to the application of securities laws to digital assets,” the SEC's former director of internet enforcement concluded.
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