- FOX’s Gasparino and SEC’s Stark raise concerns over Ripple’s victory.
- Judge Rakoff’s contrasting decision in a related case adds weight to the doubts.
- The judge’s “major questions doctrine” rejection hints at a potential series of further rejections.
A Senior FOX Correspondent, Charles Gasparino, expressed his views on the Ripple and XRP case following a recent counter-court ruling. Gasparino tweeted that he found legal backing for his earlier claim that the recent decision granting victory to XRP was legally flawed.
Holding on to District Judge Jed Rakoff, he compared the ruling to an unfathomable scenario where criminals are set free based on the race of jurors, highlighting the supposed absurdity of the ruling.
Rakoff is one of the leading jurists in the field securities law and he agrees with me: Judge Torres’ @Ripple XRP decision make no logical or legal sense. In other words it makes as much sense as her decision to let criminals free based on the race of the jurors https://t.co/LfEnihVuM1— Charles Gasparino (@CGasparino) August 3, 2023
Notably, Gasparino expressed this sentiment by quoting sweeping statements from John Reed Stark, a former chief of the SEC Office of Internet Enforcement. Stark argued that the Ripple decision was already facing significant troubles, implying it might not hold up well in the long run.
Stark highlighted that District Judge Jed Rakoff has recently allowed the U.S. regulator to proceed with its case against Terraform Labs and its founder. In the ruling, Judge Rakoff reportedly dismissed the distinction between public and institutional sales in the Ripple case.
According to Stark, this decision departs from the earlier reasoning in the Ripple victory ruling, prompting speculation that the SEC intends to appeal the Ripple ruling. The ex-SEC official argued that the chances of a successful appeal now seem even more likely.
Furthermore, Stark highlighted that Judge Rakoff is renowned for his fiercely independent stance. Moreover, Judge Rakoff rejected Terraform Labs’ argument based on the “major questions doctrine.”
This doctrine, rooted in a Supreme Court ruling, seeks to restrain regulatory agencies like the SEC from overstepping their boundaries. Stark noted that many crypto defendants, including Coinbase (NASDAQ:COIN), have employed this argument in their defense against the SEC.
Lawyer Stark ultimately concluded that Judge Rakoff’s ruling, which rejected the Ripple decision, is just the beginning of what could be a series of further rejections.
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