Haun Ventures CEO: Ripple Case Leaves SEC in 'Current Confusion

Haun Ventures CEO: Ripple Case Leaves SEC in 'Current Confusion

A former federal prosecutor who has transitioned into the role of CEO of a venture capital fund specializing in cryptocurrencies expresses doubt about the likelihood of an immediate appeal by the United States securities regulator in the Ripple case ruling. This hesitation is attributed to the regulator's advantage in the absence of "legal clarity."


 

On July 13, Judge Torres granted a partial summary judgment favoring Ripple Labs concerning the classification of XRP as a security. Despite some observers warning of a potential appeal from the SEC, Haun Ventures CEO Katie Haun took to Twitter on July 15 to explain that the securities regulator is likely to remain silent due to the current state of confusion. She suggested that pursuing an appeal could jeopardize the SEC's future enforcement actions.

While Haun acknowledged that anything is possible, she expressed skepticism about the SEC's actual desire for legal clarity, stating, "The Commission benefits from the current confusion and losing these issues on appeal would jeopardize its entire enforcement agenda. So I’d be surprised if the SEC tried to appeal now." Haun's perspective aligns with others who have shared similar opinions.

Ripple Labs CEO Brad Garlinghouse also believes that the SEC is unlikely to lodge an appeal and suggests it may take several years if they decide to do so. He further argues that an appeal by the SEC would only serve to reinforce Judge Torres' determination that XRP is not a security. In a video published on YouTube on the same day, U.S. lawyer and Ripple commentator Jeremy Hogan expressed his belief that the SEC will only launch an appeal after the trial between the SEC and Ripple concludes, which is scheduled for early 2024.

Aside from the Ripple case, the SEC is presently suing crypto exchanges Binance and Coinbase over alleged violations of securities laws. Some speculate that the recent Ripple case ruling, while not legally binding, could influence the outcome of these cases.

In the meantime, numerous crypto commentators and lawmakers are urging Congress to take action and provide regulatory clarity for cryptocurrencies in light of the recent ruling.

Brian Quintenz, former commissioner of the Commodity Futures Trading Commission and currently heading 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 emphasized the urgent need for Congress to establish a clear and comprehensive regulatory framework for the cryptocurrency industry, highlighting how the ruling underscores this necessity.


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