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Former SEC Chief Robert Cohen Says Ripple Cannot Win From SEC


thecryptobasic.com 04 July 2022 14:12, UTC
Reading time: ~3 m

SEC will not lose from ripple.

The former Securities and Exchange Commission chief does not think there is a chance that the SEC could become the losing party in the ongoing lawsuit against blockchain company Ripple.

Robert Cohen, a former chief of the SEC’s Division of Enforcement, said recently that the Securities and Exchange Commission would do everything to ensure it is victorious in the lawsuit.

In the event that the court rules in favor of Ripple, Cohen said the SEC would explore federal securities laws to ensure that it gets a favorable ruling.

Ex-SEC Chief of the Division of Enforcement Robert Cohen responds to a question about the implications of the #SEC losing to #RIPPLE @JohnEDeaton1 @DigPerspectives @digitalassetbuy @MarketsMickle @XRPNews_ @WorkingMoneyCH pic.twitter.com/enOyQdV7w2

— wEeZiE {X}💭 (@NerdNationUnbox) July 2, 2022

Massive Interest in the Lawsuit

Since the nascent space emerged, the Ripple v. SEC lawsuit has been described as one of the biggest cases in the cryptocurrency industry. The outcome of the lawsuit is expected to become a major determinant of the status of cryptocurrency regulations in the United States.

As reported, a win for Ripple would prompt the SEC to establish clearer regulations for the crypto industry. However, if the blockchain company loses, it would mean that more than 20,000 digital currencies will be classed as securities and will be subject to the same treatment as Ripple.

Understandably, there is a growing interest in the lawsuit’s outcome and Cohen believes the Securities and Exchange Commission would want to maintain its clean track record even if it means “using the full force of federal securities laws to right the wrongs of rulings made by a judge.”

Previous Event Suggests SEC Will Not Accept Defeat

The former SEC chief cited a previous case filed by the agency against cryptocurrency firm Blockvest LLC. The case marked the first time the SEC had suffered its first-ever defeat against a cryptocurrency company, as the court denied the agency’s motion for a preliminary injunction against Blockvest on November 27, 2018.

However, Blockvest’s victory was cut short as the SEC filed a motion the following month seeking partial reconsideration of the court’s ruling.

Less than three months later, the court granted the SEC’s motion for reconsideration. This time, the court had to rely on new documents and evidence that it had initially ignored, and the SEC maintained its winning streak against crypto firms.

Not New

Interestingly, the SEC has exhibited a snippet of what the Ripple community should expect if it does not get a favorable ruling in the lawsuit.

Recall that the Securities and Exchange Commission has refused to accept defeat in its quest to protect internal documents related to the speech made by the former Director of Corporation Finance.

Despite being ordered to surrender the documents to Ripple, the SEC launched another effort on the basis of attorney-client privilege to ensure it keeps the documents.


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