The lawyers say the ‘odds’ are still in the SEC’s favor, but there is a twist

Ripple has filed its Civil Appeal Pre-Argument Statement, commonly referred to as Form C. A key question on everyone's mind is whether an investment contract must include provisions that impose continuing obligations on the seller under Section Five of the Securities Act of 1993. Allow the buyer to claim profit from the seller's activities. Ripple argues that these requirements do not apply to its case.

Impact on SEC Regulation:

Regarding the aforementioned Ripple litigation, lawyer Fred Rispoli said on the Good Morning Crypto Show that a ruling in Ripple's favor could significantly weaken the SEC's regulatory framework for cryptocurrencies. If a court decides that valid contractual obligations are necessary to classify something as a security, it can overturn previous rulings and challenge the SEC's authority.

Chances of Success:

While Rispoli estimates a 30% to 40% chance that Ripple will win, note that the SEC still seems to have the upper hand. A loss to the SEC could jeopardize its entire approach to regulating the crypto industry.

But, he says, “You have to take everything a big company, organization or political campaign says with a grain of salt. However, their argument is strong, and Ripple is in good shape. So it is one and the same. They've got good opportunities, strong arguments, and they're on the right side.

Summary:

As October draws to a close, many traders will turn their attention to the crypto market in anticipation of a major move that has yet to materialize. Heading into the weekend, the market remains relatively subdued. Ripple vs. The SEC's case is growing, CEO Brad Garlinghouse made bold statements about the firing of SEC Chairman Gary Gensler. This escalating conflict is drawing a lot of attention as both sides prepare for the next legal battle.