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XRP Lawyer Doubts Robinhood’s Win Against SEC, Here’s Why – Crypto News

Published

1 year ago

May 7, 2024

Dripp

The crypto market buzzes with speculation as prominent XRP advocate and lawyer, Bill Morgan, raises skepticism regarding Robinhood’s odds in its latest legal skirmish with the U.S. Securities and Exchange Commission (SEC). Notably, Morgan’s comments come amid a brewing controversy surrounding Robinhood’s alleged violations of securities laws, triggering concerns within the digital assets sector.

Pro-XRP Lawyer Questions Robinhood’s Chances

In a surprising turn of events, Bill Morgan, known for his vocal support of XRP, has expressed doubt regarding Robinhood’s ability to emerge victorious in its legal tussle with the SEC. However, Morgan’s skepticism stems from a recent statement, where he questioned the validity of predictions suggesting a favorable outcome for Robinhood.

Meanwhile, despite a report by KBW indicating a potential win for the trading platform, Morgan casts doubt on the likelihood of success, emphasizing the absence of a formal complaint from the SEC. He said that the outcome or Robinhood’s victory chance remains uncertain as the SEC hasn’t yet filed any complaint.

Notably, Morgan’s remarks add a layer of uncertainty to the unfolding drama surrounding Robinhood’s clash with regulatory authorities, sending ripples across the cryptocurrency market. Besides, as a prominent figure in the crypto legal sphere, Morgan’s commentary underscores the complexities and uncertainties inherent in regulatory battles within the digital assets industry.

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KBW Report Contradicted

While KBW’s research report paints a rosy picture for Robinhood, Morgan’s dissenting voice challenges the prevailing narrative, highlighting lingering uncertainties surrounding the SEC’s impending action. In other words, KBW’s assertion of Robinhood’s potential triumph in court clashes with Morgan’s skepticism, setting the stage for a contentious legal showdown with far-reaching implications for the crypto landscape.

For context, the U.S. SEC issued a Wells Notice to Robinhood for alleged violations of securities laws on May 6. The notice indicates a potential enforcement action against Robinhood’s crypto business, citing violations of Sections 15(a) and 17A of the Securities Exchange Act.

Meanwhile, the action may involve civil injunctive measures, administrative proceedings, or a cease-and-desist order, seeking remedies such as disgorgement, penalties, and limitations on activities. This development highlights regulatory scrutiny on commission-free trading platforms like Robinhood, signaling increased oversight in the cryptocurrency space.

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