Speculation about the legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC) intensified when Dennis Kelleher, CEO of Better Markets, claimed that the SEC has a 90% chance of winning its appeal against Ripple.
Kelleher, in comments shared on X, criticized District Judge Analisa Torres’s recent ruling, describing it as a misinterpretation of the law.
Better Markets CEO Kelleher Criticizes Judge’s Ruling in the Ripple Case
Kelleher argued that Judge Torres’s ruling misinterpreted “90 years of law upside down,” particularly in her view that sophisticated investors should receive more protection under securities laws than less experienced ones.
He pointed out that other judges have disagreed with this approach, which is why he believes the SEC has a strong chance of winning on appeal. Kelleher’s criticism underscores a split in judicial opinions, with him suggesting that Torres’s ruling may leave retail investors at risk.
Judge Torres’s decision partially favored the SEC, prohibiting Ripple from further violations of securities laws and imposing a $125 million civil penalty. However, she ruled that XRP itself is not a security. Ripple’s Chief Legal Officer, Stuart Alderoty, believes this decision will likely be upheld on appeal.
Legal Experts Challenge Kelleher’s Claims in Ripple SEC Lawsuit
Despite Kelleher’s assured statement, Stuart Alderoty, the head of Ripple’s legal team, is unwaveringly confident in their stance. Alderoty noted that, with a reversal rate of less than 10%, appellate courts seldom reverse decisions made by lower courts.
In addition, he argues that Judge Torres’ ruling was comprehensive and well-reasoned, which makes it doubtful that the SEC will be successful in its appeal.
Furthermore, CryptoLaw pointed out that, in opposition to Kelleher’s assertions, the SEC had already declared it would not appeal this portion of the decision.
