• Former SEC Director Marc Fagel does not believe that XRP investors have a chance to win their lawsuit against the SEC.
• Fagel believes that filing such a suit would be a losing case under current law and could put an attorney at risk of sanctions.
• Despite this, members of the XRP community remain confident in their chances and are willing to stand behind any lawyer brave enough to take on the case.
XRP Investors File Lawsuit Against SEC
A recent exchange on Twitter has highlighted the skepticism of Marc Fagel, a former Regional Director of the Securities and Exchange Commission’s (SEC) San Francisco Regional Office, about the potential for XRP investors to win a lawsuit against the SEC. The lawsuit was filed after the SEC charged Ripple with violating securities laws by selling unregistered securities in 2020.
Fagel’s Warning
Fagel did not mince words when he asserted that any such case would be doomed to fail under current legislation, suggesting that any attorney considering filing such a suit would run the risk of facing penalties given the facts currently available. He further suggested that attorneys may still be willing to take up the cause despite his warning of an unfavorable outcome.
XRP Community Support
Despite Fagel’s warnings, XRP community members remain undeterred and confident in their chances, claiming there are around 75,000 members ready to support any lawyer brave enough to challenge the SEC in court.
Hypothetical Legal Outcomes
Another Twitter user jumped into the discussion by posing a hypothetical scenario where a judge rules that previous sales from 2014-2019 were securities offerings but with current utility, XRP can no longer be classified as such. They asked Fagel if it would open up trading opportunities for XRP holders or whether they would still face restrictions due to past activities.
Conclusion
Overall, despite some optimism from XRP holders regarding their legal prospects in challenging SEC regulations over cryptocurrency assets, it appears that most experts remain unconvinced they will find success in court based on current evidence available.