Jeremy Hogan Predicts No Clear SEC Win in Ripple Case Appeal

In a post on X, Jeremy Hogan, a pro-XRP lawyer, expressed skepticism about the U.S. Securities and Exchange Commission (SEC) achieving a definitive victory in its ongoing legal battle with Ripple (XRP). The case, currently poised for the U.S. Court of Appeals for the Second Circuit, may not end favorably for the SEC, even if it wins the appeal.

SEC Faces Tough Road in Ripple Appeal

Hogan believes that the complexities of the case mean the SEC could face an uphill battle during the appeal. Even with a potential win, the case would likely revert to the trial court for further factual assessments. This reflects a scenario where the SEC’s initial victory could lead to more prolonged legal proceedings.

Sound logic. Plus remember that even if the SEC "wins" the appeal, the case just comes back down to the trial court for further factual determinations. There is no final glorious victory for the SEC up in the 2nd Circuit, just the potential for disaster.

— Jeremy Hogan (@attorneyjeremy1) June 20, 2024

This predicament comes after a district court decision by Judge Analisa Torres, which, in July 2023, ruled that XRP tokens are not securities when sold to retail investors on exchanges. However, the same decision found Ripple violating federal securities laws through its sales to institutional investors.

The judicial landscape shows varied interpretations, complicating the SEC’s position. Former SEC Division Chief Kristina Littman hinted last month that the SEC might not escalate the Ripple ruling to a higher court, potentially leaving Torres’ decision as a standalone district court opinion.

This decision starkly contrasts with U.S. District Judge Jed Rakoff’s rejection of similar reasoning in the SEC’s case against Terraform Labs, where he argued that the legal status of a token should not vary based on the investor type. This viewpoint gained traction in the Coinbase decision, marking a win for the SEC.

XRP Seeks Relief in Ongoing SEC Case

The Ripple case remains in the remedy phase, with Ripple seeking to reduce fines and penalties significantly. This phase follows SEC Chair Gary Gensler’s remarks in July, suggesting the possibility of an appeal against the Torres ruling.

Adding to the controversy, Hogan has criticized the SEC proposed $2 billion fine on Ripple Labs, arguing that it contradicts the SEC’s mission to protect investors. He pointed out that enforcing such a fine would necessitate Ripple to sell a substantial amount of XRP, potentially harming retail holders due to price impacts.

Also Read: Ripple XRP Case Update June 20: “Judge Torres Was Right On XRP”, SEC May Not Appeal