Ripple’s best path forward does not involve a lengthy courtroom battle with the U.S. Securities and Exchange Commission (SEC), according to a prominent crypto lawyer.
Stephen Palley, a blockchain and digital currency lawyer at Anderson Kill, says the notion that the San Francisco payments firm could succeed in court and create a new legal test for digital assets is delusional.
“For XRP to survive, Ripple needs to cut a deal with the SEC and not persist in the risible delusion of ultimate success in the US Supreme Court and substitute the Ripple Test for the Howey Test. There are 600 million reasons why I am right.
If they care about bag holders, that’s the path.”
Palley is also weighing in on Ripple’s second lawsuit, which was filed in the Delaware Chancery Court this week.
Tetragon Financial Group Ltd. filed a complaint against the company seeking to “enforce its contractual right to require Ripple to redeem” Series C preferred stock