Haun Ventures CEO Suggests Unlikely SEC Appeal in Ripple Case, Citing Agency’s Benefit from Existing Confusion

Katie Haun, the CEO of Haun Ventures and a former federal prosecutor, expressed doubt that the United States Securities and Exchange Commission (SEC) would immediately appeal the ruling in the Ripple case. According to Haun, the SEC is currently benefiting from the “current confusion” surrounding crypto regulations and would risk its enforcement agenda by pursuing an appeal that could result in legal clarity.

Judge Analisa Torres granted a partial summary judgment in favor of Ripple Labs on July 13, pertaining to the classification of XRP as a security. While some anticipated a potential appeal from the SEC, Haun took to Twitter on July 15 to explain her skepticism regarding an immediate appeal. She suggested that the SEC’s enforcement agenda relies on the existing ambiguity and losing the appeal could undermine its future actions.

Haun’s perspective aligns with Ripple Labs CEO Brad Garlinghouse, who also believes that an appeal from the SEC may not occur for several years. Garlinghouse added that an appeal would only reinforce Judge Torres’ ruling that XRP is not a security.

Another Ripple commentator and U.S. lawyer, Jeremy Hogan, shared his belief that the SEC will likely appeal after the trial between the SEC and Ripple concludes, which is scheduled for early 2024.

The SEC is presently involved in lawsuits against major crypto exchanges Binance and Coinbase over alleged securities law violations. Although the recent Ripple case ruling does not establish a binding precedent, it could potentially impact the outcome of these cases.

Calls for congressional action to provide legal clarity in the crypto industry have grown louder in the wake of the ruling. Brian Quintenz, former commissioner of the Commodity Futures Trading Commission and currently heading policy at crypto venture capital fund a16z, highlighted that the ruling exacerbates uncertainty for entrepreneurs and builders. U.S. Senator Cynthia Lummis echoed the sentiment, emphasizing the urgent need for Congress to establish a comprehensive regulatory framework for the cryptocurrency industry in light of the ruling.

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