Pro-XRP legal expert Bill Morgan has expressed his profound disappointment against the U.S. Securities and Exchange Commission (SEC) following the regulator’s decision to dismiss its claims against Ripple executives Brad Garlinghouse and Chris Larsen.
Morgan took to X to voice his sentiments, leaving no room for ambiguity. He stated that he “sincerely” wishes the SEC the “worst” in the forthcoming penalties phase of its lawsuit against Ripple, openly hoping that the court will impose the “smallest penalties possible.
The penalties in question are tied to the SEC’s allegation that Ripples’s institutional sales constituted investment contracts, a ruling made by Judge Analisa Torres.
The scheduled trial to hear the SEC’s case against Ripple has been postponed following the dismissal of its claims against Garlinghouse and Larsen.
However, the SEC also cannot immediately proceed with an appeal until Judge Torres gives a final judgement acknowledging the dismissal and deciding on remedies for the violation regarding institutional sales.
Morgan outlined his reasons for believing the SEC deserves the worst in a series of tweets. He began by referring to when the SEC first filed its lawsuit against Ripple and sought an injunction to stop future XRP sales.
Morgan said this injunction would have “ruined” Ripple and “deeply adversely affected” Garlinghouse and Larsen.
According to Morgan, the SEC did this despite no allegations of fraud or evidence of investor harm.
He further accused the regulator of trying to delay the matter and drive up legal costs for the defendants.
Ripple co-founder Chris Larsen has voiced similar sentiments, holding the SEC accountable for its actions and claiming that it had damaged the United States’ reputation as a hub for innovation.
