Gamza Khanzadaev
Law veteran Marc Fagel’s insights shed light on next major steps in SEC’s legal battle with Ripple and Robinhood’s regulatory woes
Law veteran Marc Fagel, renowned for his extensive experience in securities litigation, recently provided crucial insights into the ongoing legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple, as well as developments concerning Robinhood’s regulatory challenges.
In the latest updates, Fagel shed light on the eagerly anticipated reply brief from the SEC in the SEC v. Ripple case, due today. Ripple, in its opposition brief, contested the SEC’s pursuit of a hefty $2 billion fine, arguing for a significantly lower penalty.
Fagel emphasized that while tomorrow marks the due date for the SEC’s reply brief, it may take the court a month or two to reach a decision, rendering premature speculations regarding the verdict useless.
Addressing the possibility of an appeal, Fagel reiterated that regardless of the court’s decision on penalties, the SEC retains the option to appeal aspects of the case, highlighting the agency’s previous inclination toward appeals.
SEC v. Robinhood
Meanwhile, Robinhood finds itself in the regulatory spotlight once again, as it received a Wells Notice from the SEC, accompanied by staff recommendations for a potential lawsuit. This development follows a subpoena issued to Robinhood, focusing on various aspects of its cryptocurrency operations.
Fagel clarified the significance of the Wells Notice, dispelling misconceptions about its nature. Contrary to popular belief, he explained that it signifies the conclusion of the SEC’s investigation and precedes the recommendation for an enforcement action, a process that typically spans several months and often culminates in federal court proceedings.
As crypto enthusiasts eagerly await further developments, all eyes are on the courtroom and regulatory decisions that will shape the future of the entire market.