Statistically, most cases never come to court – yet Ripple remains steadfast and pushes for the trial.
The litigation between the Securities and Exchange Commission (SEC) and Ripple is currently in the pre-negotiation phase. The goal is for each party to investigate the facts of the case by obtaining evidence from the opposing party and others.
Loud Attorney Jeremy Hogan, due to resource pressure, only a small percentage of cases ever reach a trial. This suggests that the SEC might try to reach an agreement with Ripple.
Considering what is at stake and how the Discovery phase has benefited the defendant’s bottom line, it should come as no surprise that the Ripple CEO wants to set a legal precedent with this case.
The Secret of the U.S. Legal System
Jeremy Hogan, partner at Hogan and Hogan, while not directly involved in the Ripple process, has proven to be a knowledgeable observer of the case.
Hogan has shared his professional opinion on the intricacies of the case, in which Ripple is accused of selling unregistered securities over an eight-year period.
Yesterday, Hogan the bomb burst, that less than 10% of civil and criminal cases ever end up in court. This is because the American legal system is unable to handle a higher throughput of cases. According to Hogan, judges who are aware of this fact would tend to pressure lawyers to agree. Hogan on Twitter:
“A little secret of the U.S. court system: not even 10% of cases come to court. The judges always put pressure on the lawyers to make a settlement, because in truth the system would collapse if more cases had to be tried. There are simply not enough resources. This applies to both civil and criminal cases.“
Ripple wants the case to go to court
When the news of the lawsuit became known in late December, call Ripple CEO Brad Garlinghouse made the case of an attack on the entire cryptocurrency industry.
According to Garlinghouse, he and Ripple chairman Chris Larsen had the option of a settlement. But given his powers of persuasion, he declined to do so to prove his case and pave the way for the rest of the crypto industry.
“Chris and I had the option to come to an agreement separately. We could do this and everything would be behind us. That’s not gonna happen. So confident are Chris and I that we are right. We will fight aggressively – and prove our case – through this case we will get clear rules of the game for the industry here in the US.“
During the process, oddities on the part of the SEC have surfaced – including disrespect for XRP investors, failure to act sooner, and potential conflicts of interest from former SEC leaders.
In the meantime home Tech writer Roslyn Layton points out that a “Ripple test” is needed as revenge for the SEC’s” bad behavior ” and exaggeration in bringing this case:
“Some investors want to punish the SEC for its bad behavior and reduce the temptation for it to abuse its authority in the future. In any case, the SEC needs its own “Ripple test” to restore its credibility.”
While there is no telling how a trial will play out – Garlinghouse seems to be in the right when it comes to clarifying these aspects. In any case, a win for Ripple could give the XRP price a massive boost.
Text evidence: Cryptoslate
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