Yassin Mobarak, founder of tech-focused private equity firm Dizer Capital, anticipates that the United States Securities and Exchange Commission (SEC) may withdraw all accusations against Ripple and its CEO Brad Garlinghouse.
Mobarak stated in a X post that it wasn’t in the SEC’s interest to have a trial where, in his words, “their corruption can be exposed.” He believes that XRP’s growing clarity in the crypto market could potentially threaten the SEC’s agenda.
Mobarak predicts that the SEC will aim to end the case as quickly as possible. This would allow them to appeal to the 2nd circuit and maintain an atmosphere of uncertainty within the industry.
Despite Mobarak’s predictions, several users expressed skepticism, citing the SEC’s determination in previous cases. Many believe the Commission will not easily concede in favor of Ripple, but rather postpone the conclusion for as long as possible.
The lawsuit between the SEC and Ripple has been ongoing for over three years, with the SEC accusing Ripple of trading billions of dollars worth of XRP as a security without registering. The legal battle reached a peak in July this year when a US court ruled that most of Ripple’s XRP sales did not constitute an offer of investment contracts.
The SEC appealed this decision last month, but Judge Torres dismissed their request, granting Ripple another victory. The trial date is set for April 23, 2024.
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