The ongoing Ripple vs SEC case continues to attract widespread attention as Charles Gasparino, a senior correspondent for FOX Business, voiced strong opinions about the controversy.
During an interview on Anthony Pompliano’s podcast, Gasparino described the SEC’s actions as unnecessary regulatory overreach. He raised questions about the future of the case under new political leadership and its broader impact on the crypto industry.
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SEC’s Regulatory Actions Come Under Fire
Gasparino first reported this with Eleanor Terrett in July last year, raising concerns about observing the SEC targeting Ripple. He noted that, at the same time, the agency covered major problems like the alleged fraud connected with Sam Bankman-Fried.
Gasparino then asked why the SEC intervened as the agency only managed to drive Ripple operations offshore and leave the rest of the US crypto sector in ‘regulatory Neverland.’
Gasparino also explored the implications of the upcoming appeal deadlines, noting that the SEC has until January 15, 2025, to submit its appeal after receiving a 90-day extension in October. By March 2025, plaintiffs are expected to present their arguments, while Ripple and its CEO, Brad Garlinghouse, must respond by April 7.
Legal analyst Bill Morgan further details Torres’s ruling not exempting lesser disclosure requirements for retail investors. Morgan also clarified that disclosure rules can only apply when the Howey test recognizes programmatic sales as investment contracts.
Ripple’s argument that it needs to make sales to institutions could, if it wins, wash away the need to disclose at the securities level altogether. He accused the SEC of presenting weak evidence and noting their expert did not interview a single retail holder of XRP.
The proof given by John Deaton also painted retailers’ expectations outside Ripple operations, bringing further discredit to the civil case of the SEC. Morgan also said that the SEC failed in proving its case as it relied on old-fashioned promotional materials given to sophisticated purchasers, poor lawyering, and no more evidence available to him.
Potential Shifts in the Ripple Case
The Ripple case might have substantial shifts under the new SEC chair, Paul Atkins, after the resignation of Gary Gensler. Speculation suggests Atkins’ leadership could lead to the case being dropped, significantly as prominent figures like Gasparino and Giancarlo predict shifts in the SEC’s stance.
Unfortunately, Gasparino has given his insights regarding Ripple and XRP, but most of the time, the “XRP mob” has attacked him. Some critics say that he distorted the legal underpinnings of Judge Torres’s decision by claiming that they allowed for lower disclosure standards.
Some community members such as Bill Morgan and John Deaton rightly pointed out that the evidence-informed the judge’s decisions, not the leniency.
Gasparino’s exchanges with the XRP community have turned contentious, with members labeling his reporting as biased and dismissive of the retail investors’ perspective. In his social media accounts, Gasparino has called supporters of XRP a ‘mob’ and waved off criticism as cheerleading for Ripple.
Critics have condemned his remarks, alleging that he was downplaying everything at stake in the case.
Ripple’s Broader Impact on the Crypto Industry
Gasparino acknowledged Ripple’s contributions to blockchain innovation and called for regulatory reforms to foster crypto development while ensuring compliance. However, he focused on outlining the potential Ripple might have in the future in other parts of the crypto space.
The level of criticism Gasparino has faced shows that the rift between the press and the crypto world is a long way off regarding the varying perspectives of how the progression of the case unfolded. With new leaders coming to the SEC and key milestones on the horizon, the Ripple case is still positioned to shape the crypto regulation in the following months.
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