SNEAK PEEK
- Lawyer Bill Morgan argues Ripple’s victory could limit SEC’s regulatory reach.
- Settling the case with Ripple could serve as damage control.
- Industry participants and crypto enthusiasts eagerly await the June 13 deadline.
In a recent Twitter thread, prominent lawyer and digital asset enthusiast Bill Morgan ignited a fresh discussion about the Ripple versus SEC legal saga and its implications for the broader cryptocurrency industry. Morgan suggests that the outcome of this high-stakes battle may have far-reaching consequences, particularly in interpreting blue sky laws and applying the Howey test to cryptocurrencies.
It was not ever the biggest reason to settle anyhow. The blue sky laws statutory interpretation point should be from a legal consequences perspective far more concerning to the SEC. Ripple winning that point will curtail the stretching of the Howey test not just for crypto /1 https://t.co/ruVXi73F42
— bill morgan (@Belisarius2020) May 28, 2023
Morgan argues that Ripple’s victory on the statutory interpretation point could be pivotal in curtailing the SEC’s authority to stretch the Howey test, not just for cryptocurrencies but across various asset classes. This perspective shows why the SEC may be willing to “run the gauntlet” to defend its position, as losing this battle could significantly limit its regulatory reach.
The conversation was sparked by Crypto enthusiast Yassin Mobarak, who pointed out that even if the SEC acknowledges the eventual release of confidential Hinman emails, settling the case with Ripple could serve as damage control. Mobarak highlights that losing the battle but limiting the loss to this case would be preferable to the SEC rather than having its entire war effort to regulate cryptocurrencies questioned.
This was allegedly after John E Deaton chimed in on Twitter to emphasize that even if specific requests for document disclosure were denied, others would undoubtedly gain access to them. The potential release of these documents to parties like Dragonchain and Coinbase further underscores the mounting pressure on the SEC to comply with the court’s ruling.
Other media outlets would join. But even if she denied Dr. Layton and other’s requests, other litigants will get those documents. @dragonchain will get the documents, Coinbase would get the documents. The SEC asked for a week extension to comply w/her ruling. June 13 is real.
— John E Deaton (@JohnEDeaton1) May 28, 2023
As the legal showdown between Ripple and the SEC intensifies, industry participants and cryptocurrency enthusiasts eagerly await the June 13 deadline, when the SEC is expected to respond. The outcome of this case could significantly impact the regulatory landscape for cryptocurrencies and shape future legal battles between regulators and industry players.
