Joseph Hall is of the opinion that the SEC is not yet equipped to handle litigation in cases involving cryptocurrencies as securities, which makes it difficult to win a case against Ripple.
The former director of the Securities and Exchange Commission believes the regulator has a good chance of losing his $ 1.3 billion lawsuit against Ripple "by nature".
Attorney Joseph Hall also expressed concern about the SEC's latest match over the long-running Ripple (XRP) lawsuit, which affects the entire industry.
The lawsuit alleges that the company and its partners, Brad Garlinghouse and Christian Larsen, did not notify the SEC of their sale of XRP in early 2013 and that the tokens were unregistered securities. The SEC is trying to prove that the result was a securities fraud. Hall, a former executive director of policy at the SEC, appeared on the Thinking Crypto podcast with host Tony Edward on February 22, where he said:
“I’m not entirely sure what the SEC is planning on proving in the XRP litigation.”
The implications for the SEC and the crypto-industry in general are enormous. As Hall said, the "SEC managed a lot" of the case and "their entire regulatory project could be closed if they lose the" case. He further said:
“And I continue to think there is a pretty good chance that (the SEC) will lose on the merits.”
Hall believes that Ripple has a strong defensive base, which the SEC has failed to provide honest information about its investigation. The SEC is required to inform individuals and companies that they are subject to review.
“I'm very sympathetic to that argument. It's a basic due process argument. The Ripple network was operating for years before the last minute filing of a lawsuit against them.”
Another lawyer who has been following and commenting on Ripple's case for some time, Jeremy Hogan, is also of the opinion that Ripple's sincere defensive message may be strong enough to save him from the famous fire. February In 23 tweets, he quoted a pattern from the SEC's March against Library Credits (LBRY) case, which was affected because the SEC did not provide correct communication.
The Ripple case could have implications that set the tone for the investigation and management of cryptocurrency cases in the foreseeable future once a decision is made. If the SEC wins, it can launch a flood of new investigations and litigation against crypto projects. If Ripple wins, it could force the SEC to reduce its stake in the crypto industry.