Ripple’s Legal Victory: Haun Ventures CEO Foregoes SEC Appeal

Key Points:

• US securities regulator may not appeal recent Ripple case ruling due to “current confusion” and risk of jeopardizing future enforcement actions.
• SEC is currently suing Binance and Coinbase for alleged violations of securities laws.
• Crypto commentators and lawmakers call for Congress to provide legal clarity to the cryptocurrency industry in light of the recent Ripple case ruling.

A federal prosecutor who turned into the CEO of a venture capital fund investing in cryptocurrencies recently stated that the United States Securities and Exchange Commission (SEC) may not file an immediate appeal against the Ripple case ruling.

According to her, the SEC is currently benefitting from the lack of legal clarity regarding the classification of cryptocurrencies and that losing an appeal could have serious implications on future enforcement actions.

On July 13, Judge Torres granted a partial summary judgment in favor of Ripple Labs, regarding XRP’s status as a security. While some commentators warned that an appeal from the SEC was possible, the CEO of Haun Ventures, Katie Haun, has expressed her doubts about it. She believes that the SEC will most likely remain quiet, as it benefits from the current confusion surrounding the classification of cryptocurrencies. She also stated that losing these issues on appeal would jeopardize the SEC’s entire enforcement agenda. Therefore, an immediate appeal seems unlikely.

Brad Garlinghouse, the CEO of Ripple Labs, also believes that it may take years before the SEC lodges an appeal. He stated that an appeal by the SEC would only reinforce Judge Torres’ decision that XRP is not a security. Jeremy Hogan, a U.S. lawyer and Ripple commentator, believes that the SEC will launch an appeal after the trial between SEC and Ripple ends, which is scheduled for early 2024.

The SEC is currently suing crypto exchanges Binance and Coinbase over alleged violations of securities laws. Some believe that the recent Ripple case ruling, while not a binding precedent, could have an impact on the outcome of these cases.

Meanwhile, many crypto commentators and lawmakers have called for Congress to take action and provide legal clarity to the cryptocurrency industry. Brian Quintenz, former commissioner of the Commodity Futures Trading Commission and now head of policy for venture capital fund a16z crypto, stated that the recent Ripple court ruling only results in more uncertainty for entrepreneurs and builders. U.S. Senator Cynthia Lummis said that the ruling underscores the urgent need for Congress to establish a clear and comprehensive regulatory framework for the cryptocurrency industry.

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