Ripple vs. SEC lawsuit: Why Brad Garlinghouse Appoints New Defense Counsel at this Crucial Juncture

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So far, Ripple has made some fantastic moves in the ongoing XRP Lawsuit; today, Ripple Labs CEO Brad Garlinghouse’s new defense attorney filed a notice of appearance in court. A new Attorney? Yes, you heard it right: we think this is a strategic move by the firm at this crucial juncture.

Though XRP’s status of Securities will remain the same for the next two years, many expect that the executives will get minimal punishment for selling “unregistered Securities.” Okay, so is it that simple, or are there complexities? Let’s face it.

Per the recent court filing, Rahul Mukhi, from the law firm Cleary Gottlieb Steen & Hamilton LLP, will represent Brad Garlinghouse exclusively. This is significant because Garlinghouse and Ripple Labs founder Chris Larsen are involved in the lawsuit, yet Mukhi is designated explicitly for Garlinghouse. This move has sparked curiosity in the XRP community about the implications of this unique legal representation.

Since the XRP case is complex and many defendants are involved, they need an experienced hand to join the ends with the regulators.

New Lawyer: Trump Card to Stop SEC Interlocutory Appeal?

Ripple’s decision to bring in a new attorney at this stage is unexpected. It raises questions about their strategy. Are they confident of winning or considering a settlement with the SEC? The new attorney, Rahul Mukhi, is highly regarded for his expertise in complex legal matters and investigations. Some experts believe Garlinghouse and Larsen might be facing unnecessary lawsuits. It could significantly strengthen his case with Mukhi on Garlinghouse’s defense team.

The two lawyers representing SEC, Richard Best and Robert Moye, exited the XRP lawsuit last month, creating a notable gap in the representation. The departure is seen as a weak case from the SEC against Ripple. However, Ripple clarified that the exit of these lawyers will not affect their stance on XRP’s status. This indicates the company’s confidence in the ongoing legal proceedings.

So… What Next?

Ripple vs. SEC is far from over, as a federal judge, Analisa Torres, has ruled that the case will proceed to trial without definitively resolving all issues. A recent decision determined that Ripple’s token is classified as a security when sold to institutional investors but not to the general public. Judge Torres’ ruling had a mixed outcome, as she concurred with the SEC that direct sales of XRP to institutional investors were unlawful securities sales.

Hence, SEC’s case against Brad Garlinghouse and Chris Larsen may be dropped because Judge Analisa Torres ruled that trading XRP on secondary markets isn’t considered securities. If this happens, the crypto will see a new day in the crypto history.

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