“A source close to the SEC tells me Hester Peirce has expressed privately she thinks the SEC will not get the outcome it’s looking for”, said FoxBusiness journalist Eleanor Terrett.
Ripple is on a roll. The XRP lawsuit seems to be going in its favor. At least, that’s the general feeling among the general public, legal experts, and the wider crypto ecosystem.
The optimism is well-grounded. Defendants seem to have cornered the SEC in its own contradictions, especially when it comes to the debate over ex-SEC William Hinman’s “personal opinion” vs “public guidance” on Ether in 2018.
SEC WILL NOT GET THE OUTCOME IT’S LOOKING FOR
It has come to FoxBusiness journalist Eleanor Terrett’s attention that even staff at the SEC aren’t confident they will win the case against Ripple.
“A source close to the SEC tells me Hester Peirce has expressed privately she thinks the SEC will not get the outcome it’s looking for”, she said.
The SEC Commissioner has expressed concern over the SEC’s approach to digital assets many times, having criticized the settlement with BlockFi by saying crypto lending is now at risk in the US.
Hester Peirce, who is also known as ‘Crypto Mom’, has been calling for regulatory clarity within the crypto space for years and has voiced her bafflement at the agency’s lack of effort.
NEXT COURT ORDER WILL BE CRITICAL
It might be because of lack of clarity that SEC’s Peirce believes the SEC will fail to achieve the outcome it expects against Ripple Labs and individual defendants, Brad Garlinghouse and Chris Larsen.
In that case, Ripple’s fourth affirmative defense also known as the Fair Notice defense will be critical to argue that the SEC failed to provide proper clarity on the matter. That would also provide precedent for other crypto businesses that could be targeted by the SEC in the future.
Judge Sarah Netburn will soon rule on the SEC’s motion to reconsider her prior decision on the deliberative process privilege. She is widely expected to rule against the plaintiff and the decision is likely to be a key driver of an upcoming settlement or complete victory.
Talk of settlement has already started and it could happen between April and May, as per the court schedule. The meetings will be mediated by Magistrate Netburn, who has seen all the privileged documents. It has also been found that Ripple lawyers believe the XRP lawsuit will be over before November 18.