Attorney Unveils Hidden Drive Behind XRP Case Appeal - Changing Game for Crypto Regulation

Attorney Bill Morgan and SEC specialist Marc Fagel provide insights into the legal battle between the SEC and Binance, highlighting the potential impact of a court's endorsement of Judge Torres' previous stance on programmatic sales. Their discussion sheds light on the motivation behind the SEC's decision to pursue an appeal in the Ripple lawsuit.

Posted 6 months ago in Blockchain

Attorney Bill Morgan and SEC specialist Marc Fagel discussing the hidden drive behind the XRP case appeal

In a recent development, attorney Bill Morgan and securities law specialist Marc Fagel delved into the legal saga between the SEC and Binance, shedding light on a critical aspect of the ongoing legal battle. Morgan's commentary was prompted by a mention of the SEC's case against Ripple in the codefendants' legal memorandum filed in support of Binance's motion to dismiss the complaint.

The codefendants, represented by BAM, Binance's partners, appear to be leveraging Judge Torres' previous opinion concerning transactions on secondary exchanges. Recall that, in SEC v. Ripple, the court ruled that secondary sales of XRP did not constitute unregistered sales of securities. The BAM defendants seek to rely on Judge Torres' finding in respect of blind/bid type transactions on secondary exchanges.

The pivotal question raised by Morgan is whether the court would endorse Judge Torres' stance on programmatic sales. This query leads to speculation about why the SEC pursued an appeal against the Torres decision in the Ripple lawsuit. The concern appears to stem from the possibility that this decision could be employed not only by Binance but also by other defendants facing similar charges, as such secondary sales are commonly used by various exchanges and sellers.

In response to Morgan's musings, Marc Fagel, a securities law specialist and former regional director of the SEC, offered insight into the regulator's motivation for seeking an appeal. Fagel explained that the decision to pursue an appeal was driven by the broader implications it holds for the regulatory body's stance on crypto exchanges. He emphasized that the appeal is not solely about Ripple but about safeguarding the SEC's overarching strategy against the crypto industry.

Last updated 9/23/2023, 9:42:43 AM


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