ARK Invest CEO Cathie Wood Says SEC Looks Like Losing in Ripple Case
Cathie Wood Weighs in on SEC v. Ripple Case, Gives Bitcoin Spot ETF Timeline. Both cases concern the SEC and have dragged on for years.
In 2020, the United States Securities and Exchange Commission (SEC) accused Ripple and its executives of violating securities laws by selling XRP to finance the business. It argued that the blockchain payment company should have registered the asset with the commission. After more than two years, the extended trial is finally awaiting a court decision.
The managing director of Ark Invest, Cathie Wood, has made a decision on the outcome of the case. She believes that the SEC looks set to lose the case. However, she does not explain why she believes this to be the case.
“It seems like them [the SEC] may be about to lose it [the Ripple case] too,” Wood said in a recent interviewwhich outlines recent losses the commission had taken in court.
It’s worth noting that recent rulings in the legal battle appear to favor the blockchain payments company. As reported, Ripple Chief Legal Officer Stuart Alderoty said the firm grew more confident with each ruling following Judge Analisa Torres’ ruling on Daubert motions.
Ripple has also recently filed letters citing court decisions from separate cases supporting the fair notice defense. As recently reported, the SEC has finally responded to these letters. However, pundits noted that the response did little damage to Ripple’s arguments, particularly regarding statements made by the judge in Voyager’s bankruptcy case.
Attorney John E. Deaton, who is representing thousands of XRP holders in the legal battle as a friend of the court, has told community members to expect a decision on so-called summary judgment in the next few weeks.
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Notably, Wood’s latest statements came in response to inquiries about the possibility and timeline of an SEC-approved Bitcoin spot exchange-traded fund (ETF) in the United States
A Bitcoin Spot ETF in June?
The Ark Invest CEO called out the commission for being inconsistent in approving Bitcoin ETF products citing statements made by judges in the Grayscale appeal. As highlighted in an earlier reportthe justices questioned why the same fraud protection was sufficient for the SEC to approve a futures ETF but insufficient for a spot ETF.
Consequently, Wood expects a favorable decision for Grayscale, which she predicts will come in June. She said the SEC would be left to choose between shutting down the Bitcoin futures product it approved or approving the Grayscale spot ETF.
Remember that Wood’s Ark Invest has submitted a Bitcoin spot ETF application twice in partnership with 21Shares; on both occasions the SEC rejected the offer, with the most recent rejection in January.
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