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Highlights
- After the Discovery phase of the Ripple vs SEC lawsuit came to a close, speculations regarding a settlement emerged.
- However, lawyer Bill Morgan believes that a settlement is improbable currently.
- The attorney cited Kraken's recent motion against the SEC and how it could affect the Ripple case's outcome.
XRP lawyer Bill Morgan has highlighted a significant hurdle in the legal feud between Ripple Labs and the Securities and Exchange Commission (SEC). This comes after Kraken, a popular crypto exchange, filed a motion for dismissal of the SEC lawsuit against them while citing crucial details from the Ripple case.
Bill Morgan Believes Ripple Vs SEC Settlement Is Improbable
Morgan’s assessment revolves around the recent actions of Kraken, which he believes have greatly diminished the likelihood of a settlement in the Ripple vs SEC case. He emphasized Kraken’s strategic utilization of Judge Torres’ ruling on programmatic sales. Morgan believes that this act “shows why the SEC will be strongly motivated to appeal Judge Torres’ decision.”
Hence, the lawyer deemed a settlement “improbable” in the immediate future much to the dismay of Ripple’s XRP supporters. Earlier, Morgan provided insights into Kraken’s legal defense strategy. He underscored the exchange’s emphasis on the lack of a tangible relationship between issuers and buyers, a contention that resonates with Judge Torres’ findings.
Furthermore, Morgan explained Kraken’s position, stating that “securities entail a certain relationship between an issuer and buyer.” The XRP attorney then highlighted that the “SEC shows no relationship between issuers of tokens which the SEC calls ‘crypto asset securities’ such as ALGO, ADA, and MATIC sold on the Kraken exchange and Kraken’s customers.”
Moreover, Kraken’s legal defense draws parallels from the SEC vs Ripple case, particularly concerning the expectation of profits. Meanwhile, Kraken’s motion asserted that the “SEC’s allegations are insufficient to plead a reasonable expectation of profits from the efforts of the issuers.” This argument, grounded in Judge Torres’ rulings, further complicates the SEC’s efforts to seek a settlement.
Also Read: Pro-XRP Lawyer Lauds Kraken’s Ripple Citation In SEC Lawsuit
About Kraken’s Motion Against SEC
In the latest filing, Kraken drew attention to the uncanny similarities with the case involving Ripple’s XRP. The filing stressed the absence of a direct link between issuer and buyer as a key defensive tactic. Through a detailed examination of the SEC’s accusations against Ripple, the cryptocurrency exchange seeks to discredit the idea of an anticipated profit based on the efforts of the issuer.
Notably, Kraken’s analysis mirrors concerns voiced by Morgan regarding the SEC’s alleged mishandling of enforcement actions. The decision of the crypto exchange to directly challenge the SEC is not made in isolation. Kraken argues that the timing of the SEC’s allegations against them, coinciding with their push for restricted SEC oversight of digital assets, raises suspicions.
Also Read: XRP Whale’s 20 Mln Accumulation Ignites Speculations As Price Nears $0.54
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