SEC v. Ripple: “This is a war. I think we should settle in for the long haul”, said attorney James K. Filan

Rick Steves

“I don’t think there are any indications that either party will go quietly into the night, whether it’s on Howey, aiding and abetting or the fair notice defense.”

new-york-city

Attorney Jeremy Hogan, a popular figure within the XRP community who has been covering the SEC v. Ripple lawsuit, has recently hinted that settlement is around the corner.

The lawyer made his case based on a string of events – which he called “strange things” – that have been taking place since June and even led him to suspect the deposition of ex-SEC Director William Hinman on July 27 didn’t even happen.

Mr. Hogan’s bold statements made quite a stir among XRP holders and might have moved the market upwards. In the meantime, another distinct lawyer within the community, James K. Filan, joined the conversation and shared his views on the matter, which concludes no settlement is to be expected soon.

“The government is not giving up and based on everything I’ve read Ripple will not give in. I do think that the Hinman deposition went forward. I don’t think Ripple would forfeit that opportunity. Ripple said Hinman has “unique first-hand knowledge about the SEC’s communications with third parties and about the agency’s adoption or approval of his well-publicized speech in 2018 about the regulatory treatment of cryptocurrencies.”

“If they can find out specifically who he spoke with and what was “information that Mr. Hinman can himself provide” – Ripple can learn information about what the SEC said to market participants that is crucial to Howey, the aiding and abetting charge and the fair notice defense. My take is that Ripple got names of who Hinman and others talked to and what was said and now Ripple is out there interviewing those people. I also understand that people are mad about the SEC’s actions and inactions after all this time, but in my opinion, this case really isn’t about punishing the SEC or anyone else.

“When a party focuses on hurting the other side, they lose focus on winning for themselves. This case is about winning and making the whole crypto space succeed. If the SEC or anyone else gets hurt in the process, they brought it on themselves. But that’s not the goal.

“The goal is to clean this mess up and move forward. So I don’t think a settlement is coming anytime soon. This is a war. I think we should settle in for the long haul”, Mr. Filan stated, adding that whoever loses this lawsuit will appeal the decision.

“I don’t think there are any indications that either party will go quietly into the night, whether it’s on Howey, aiding and abetting or the fair notice defense.”

Ripple’s XRP losing competitive advantage: BIS and SWIFT going real-time

Commenting on Mr. Filan’s views, attorney Jeremy Hogan acknowledged “some great points”, but reminded the reason for his suspicions. “If there’s no settlement and Ripple didn’t respond to the SEC brief, I think that’s a mistake and that’s not something I would expect from this legal team.

SEC adds new trial lawyer: Attorney Pascal Guerrier

The discussion between the two prominent lawyers might have been settled with the breaking news that Attorney Pascal Guerrier filed a Notice of Appearance on behalf of the SEC.

Attorney Hogan already commented on the news: “This is not the filing I expected to see this week but, it’s NOT consistent with a “done deal.” I’ve thought through other possibilities and still think the addition of a trial lawyer to the SEC team is enough to conclude that no settlement has been reached IMO.”

Mr. Hogan originally pointed to September as the earliest date for a settlement and “early 2022 – maybe January” for a case being decided on summary judgment.

In the meantime, SEC Chair Gary Gensler must have replied to Senator Elizabeth Warren’s letter seeking information about the regulator’s “authority to properly regulate cryptocurrency exchanges and to determine if Congress needs to act to ensure that the SEC has the proper authority to close existing gaps in regulation”.

 

Read this next

Industry News

Celsius $750m insurance claims are fraud, says lawyer seeking EU crypto superfund

“It is an intentional deception in aid of a billion-dollar securities offering.”

Institutional FX

DGCX brokers authorized to provide derivatives trading and clearing services

The DFM is looking to provide multiple asset classes such as; equities, ETFs, equities’ futures, crude oil futures, etc. to meet the growing demand from its diversified base of local and international investors.

Digital Assets

EQONEX leaves “crowded crypto exchange space” amid crypto winter

“The recent extreme market volatility and declining trading volumes have added to the headwinds being felt by exchange operators. We take a realistic view that our exchange will not move the needle for us financially over the near-to-medium term.”

Digital Assets

FTX and Paradigm partner for spreads trading: lower risk, lower fees

“This structured spread trading product is the first that will enable crypto investors to utilize cash and carry trades through FTX and Paradigm.”

Industry News

SEC uncovers online retail brokerage hacking scheme

Fraudsters were able to sell their holdings at artificially high prices and reap more than $1 million in illicit proceeds, the SEC alleged. 

Executive Moves

Cornerstone FS taps James Hickman as CEO

“I see great potential in the business from its proprietary technology to its regulatory permissions. It is already delivering an exceptional service to its SME customers and the scalable platform is ideally positioned to add further product capability.”

Retail FX

FCA warns of Lite Forex Pro as crackdown on clone scams continues

The UK Financial Conduct Authority has put out a press release that warns about a new ‘clone firm’ investment scam impersonating LiteForex‎, which rebranded last year as LiteFinance.

Digital Assets

Novogratz’s Galaxy Digital backs out of $1.2 billion deal to buy BitGo

Crypto merchant bank Galaxy Digital would not move forward with its bid to buy digital-asset custodian BitGo.

Executive Moves

OctaFX elevates Nikolas Charalampous to executive director role

OctaFX has promoted its head of dealing, Nikolas Charalampous, to the role of executive director, which saw the expansion of his day-to-day responsibilities and oversight.

<