CandleFocus

Why the SEC’s Ripple Appeal Might Not Hold Up in Court

Author: Content Editor
The Securities and Exchange Commission (SEC) is appealing a recent court ruling in the Ripple case, even though it lacks strong evidence to support its claims. The court ruled that Ripple's actions did not influence XRP's price enough to establish investor expectations of profit. The SEC's case now relies on convincing the appeals court that programmatic buyers expected returns based on Ripple's operations, despite the court rejecting their own expert testimony. The SEC's appeal is further hindered by evidence from real XRP investors who did not rely on Ripple's efforts when purchasing XRP. The agency must now rely on the legal fiction of a hypothetical investor to support its claims, as it lacks solid evidence and reliable expert testimony.

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