Attorney Jeremy Hogan, a well-known legal expert in the cryptocurrency space, recently highlighted the complexities surrounding the U.S. Securities and Exchange Commission’s (SEC) ongoing lawsuit against Ripple.
In a post on social media, Hogan discussed the SEC’s decision to pause its lawsuit against the Tron Foundation, noting that the Ripple case is significantly more complicated and, therefore, not as easily dismissed.
Ripple is STILL a more complicated a case to resolve because of the judgment. The Tron case wasn't nearly as far along.
That's right – first in, last out.
— Jeremy Hogan (@attorneyjeremy1) February 26, 2025
Hogan’s analysis sheds light on why the SEC finds it difficult to resolve the Ripple lawsuit, despite dropping or settling other high-profile crypto cases . Unlike the Tron lawsuit, Ripple’s case has already reached key legal milestones, making a simple dismissal much less feasible.
The SEC’s Recent Move in the Tron Case
The SEC has requested a 60-day stay in its lawsuit against the Tron Foundation and its founder, Justin Sun, signaling a potential settlement or resolution. This case involved multiple allegations, including the sale of unregistered securities, market manipulation, and unlawful payments to celebrity promoters.
Hogan pointed out that the Tron lawsuit had not progressed as far as the Ripple case, making it easier for the SEC to pause or settle. In contrast, the Ripple lawsuit has already resulted in a significant court ruling, complicating the SEC’s options.
Why Ripple’s Case Is Harder to Dismiss
The SEC’s lawsuit against Ripple, which began in December 2020, has led to a landmark legal battle over whether XRP transactions constitute securities sales. In July 2023, Judge Analisa Torres ruled that XRP was not a security in programmatic sales (such as those on exchanges) but was a security in institutional sales. This ruling marked a partial win for Ripple but left room for further legal disputes.
Unlike the Tron case, which had not yet reached a major judicial decision, the Ripple lawsuit resulted in a significant legal precedent.
If the SEC were to dismiss the case now, it would effectively accept the ruling without further challenge. Given that the case has broader implications for other cryptocurrencies, the SEC is likely hesitant to let the decision stand without an appeal or further litigation.
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Challenges Facing the SEC’s Appeal
The SEC has already filed an appeal in the Ripple case, but overturning Judge Torres’ ruling presents several challenges:
Legal Precedent Already Established – Judge Torres’ decision, which found XRP sales on exchanges did not constitute securities transactions, set a legal precedent that the SEC must now challenge on appeal. Since the ruling is based on a detailed legal analysis, the SEC must convince a higher court that Torres misapplied the law—a difficult task given the court’s thorough reasoning.
High Standard for Reversal – Appeals courts do not re-litigate cases but instead review whether the lower court made an error in applying the law. The SEC must demonstrate that Judge Torres’ reasoning was flawed to a degree that justifies reversal. If the Second Circuit Court of Appeals upholds her decision, it would further reinforce Ripple’s victory and limit the SEC’s ability to apply securities laws to other cryptocurrencies.
Risk of Strengthening Ripple’s Position – If the appellate court sides with Ripple, it would create an even stronger precedent against the SEC’s arguments, weakening its enforcement position in future crypto cases. An unfavorable ruling at the appellate level could further constrain the SEC’s ability to regulate digital assets as securities.
Public and Industry Pressure – The SEC has faced increasing scrutiny for its regulatory approach to cryptocurrencies, with lawmakers, industry leaders, and even some judges questioning its legal strategies. Continuing the appeal prolongs uncertainty and may fuel further criticism of the agency’s tactics. A loss on appeal would further damage the SEC’s credibility in crypto enforcement.
While the SEC is pushing forward with its appeal, these challenges highlight why dismissing the case outright was never realistic. The outcome of the appeal will significantly impact not just Ripple but the broader crypto industry’s regulatory future.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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