Former SEC Official Predicts ‘Big Win’ for SEC in Terra Lawsuit — Expects Continued Rejection of Ripple/XRP Ruling

The U.S. Securities and Exchange Commission’s erstwhile caput of net enforcement has predicted a “big win” for the SEC successful the suit involving Terraform Labs. The ex-SEC authoritative besides expects District Judge Jed Rakoff to support rejecting the ruling by District Judge Analisa Torres regarding Ripple and XRP.

Stark: ‘Expect a Big Win for the SEC’

Former U.S. Securities and Exchange Commission (SEC) authoritative John Reed Stark shared immoderate predictions regarding the regulator’s actions against crypto firms successful a lengthy station connected societal media level X connected Monday. Stark is presently president of cybersecurity steadfast John Reed Stark Consulting. He founded and served arsenic main of the SEC Office of Internet Enforcement for 11 years. He was besides an SEC enforcement lawyer for 15 years.

The erstwhile SEC authoritative wrote:

Prediction: Expect a large triumph for the SEC successful the SEC/Terra litigation and a gracious (yet scathing) rebuke of the caller SEC/Ripple decision.

Stark noted that some the SEC and Terraform Labs “have present filed dueling summary judgement motions, each seeking an aboriginal triumph astir whether crypto tokens are securities.”

In the SEC suit against Terraform Labs and its co-founder Do Kwon, Judge Jed Rakoff of the United States District Court for the Southern District of New York (SDNY) rejected District Judge Analisa Torres’ ruling regarding Ripple and XRP. “The tribunal rejects the attack precocious adopted by different justice of this territory successful a akin case, SEC v. Ripple Labs Inc.,” Judge Rakoff said successful August.

The erstwhile SEC net enforcement main continued:

My instrumentality is that famed securities instrumentality adept Judge Jed Rakoff, who is presiding implicit the SEC/Terra matter, is chomping astatine the spot to (politely) statement the Ripple determination by chap SDNY Judge Analisa Torres arsenic some aberration and abhorration.

Stark believes that for SEC lawyers, Judge Rakoff is “arguably considered the astir respected and experienced securities instrumentality jurist not lone successful the SDNY but possibly successful the full U.S. national tribunal system.” The ex-SEC net enforcement main concluded:

The stark world is that Judge Rakoff already repudiated and spurned Judge Torres’s determination and it seems inevitable that helium volition bash truthful again, not conscionable astatine the summary judgement phase, but besides anytime successful the aboriginal erstwhile addressing the exertion of securities laws to integer assets.

What bash you deliberation astir the predictions by erstwhile SEC net enforcement main John Reed Stark? Let america cognize successful the comments conception below.