The SEC vs. Ripple lawsuit has continued for a notable period, with the progression of the case resulting in both parties experiencing upsides and downsides, courtesy of the court’s ruling.
Very recently, an observation raised by a key figure signifies that Ripple Labs might be best positioned to one-up the U.S. Securities and Exchange Commission, its long-standing rival.
Highlighting a potential expected outcome, Kristina Littman, the former head of the SEC’s Enforcement Cyber Unit, asserted that the SEC might not appeal the court’s recent ruling but could instead accept the court’s verdict.
Notably, the highly anticipated opinion ruling on competing summary judgment motions in the SEC vs Ripple Labs case was issued on the 13th of July by Judge Analisa Torres. The ruling opposed certain aspects of both Ripple and SEC’s motions.
Per the Judge’s findings, XRP is not a contract transaction or a scheme. The discovery is particularly significant for the Ripple ecosystem, especially because it opposes the SEC’s previous position on the majority of the existing assets termed security.
Ripple caught up in another securities suit
However, later this year, the cryptocurrency community expects to see the court amend its ruling and conclusively allow the SEC to appeal the court’s decision.
Littman, who shared her thoughts at a recent conference on digital assets, further stated that a handful of notable figures disagreed with the Judge’s ruling.
“I think there’s some speculation that because Judge Rakoff and the Terra opinion explicitly disagreed with Judge Torres’ logic from the Ripple opinion, and then Coinbase doesn’t address the Ripple opinion as much, but you know pretty explicitly adopts the Terra logic.” She asserted.
Additionally, she explains that the market suspects that the SEC might overlook the court’s opinion on Ripple to avoid potentially elevating the district court option to a level “where they could potentially elicit bad law when they have otherwise favorable rulings in the aftermath of the Ripple litigation.”
Meanwhile, the new development comes as Ripple is facing a security suit in California because its CEO made a “misleading statement.”
According to Phyllis Hamilton, a judge of the U.S. District Court for the Northern District of California, discovered that XRP might be classified as a security after it was sold in a retail market.