Former head of SEC enforcement Robert Cohen believes that the regulator is ready to go to any lengths to achieve victory in a lawsuit with Ripple.
The US Securities and Exchange Commission (SEC) lawsuit filed against Ripple is considered one of the most high-profile proceedings in the cryptocurrency industry. The commission accuses Ripple of organizing an illegal ICO in 2013 and claims that the sale of XRP violates securities laws. The company disagrees with the department’s allegations, and the legal battle, which began in late 2020, is still ongoing. Members of the cryptocurrency community expect its outcome to be a major factor in determining the regulation of cryptocurrencies in the United States.
Former head of the SEC’s enforcement department, Robert Cohen, doesn’t think the SEC can be the loser. If the court does decide in favor of Ripple, the SEC will “thoroughly” study federal securities laws and present any arguments from them to change the court’s decision in its favor. The SEC will make every effort to maintain its reputation, Cohen said, even if it means using the full force of the federal securities laws to correct “an erroneous ruling by a judge.” If Ripple loses, all digital currencies will be classified as securities, and their issuers will be required to undergo mandatory registration with the department.
Cohen added that the SEC will not accept a possible defeat. He mentioned a previous case initiated by the department in 2018 against the cryptocurrency company Blockvest LLC. The case marked the first time the SEC has suffered its first-ever defeat by a cryptocurrency company, as a California court denied the agency’s request to recognize Blockvest’s crypto assets as securities. However, Blockvest did not enjoy the victory for long, as a month later the SEC filed a motion for a partial review of the court’s decision, which was granted. This time, the court had to rely on new documents and evidence. In 2020, the regulator won a case against Blockvest, which was fined $696,000.
Recently, Ripple CEO Brad Garlinghouse said that if the company loses the SEC lawsuit, it will move from the US to another jurisdiction, and Ripple’s loss will not affect the cryptocurrency industry in any way.
Source: Bits
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