Unfair delay can be a compelling argument, Linda Jeng, adjunct professor at Georgetown Law and former SEC lawyer, said in an interview.
“As a former regulator, I am disappointed that the SEC has waited so many years after the introduction of a product to initiate enforcement action,” said Jeng, who is also the global head of policy for the start-up. -up fintech Transparent.
Regulators should always apply their power in a thoughtful and proportionate manner, and that should be predictable, Jeng said. When the agency waits so long to pursue an action, it makes them appear arbitrary and undermines their credibility, she said.
Hinkes also considered Ripple’s arguments to be “very sympathetic” and said the agency’s delay and the different classification of other coins undermined the government’s position that Ripple executives should have known that XRP should be registered. as security and recklessly ignored the obligation.
Still, he warned that doesn’t mean the agency doesn’t have the authority to bring the case forward. The SEC has broad enforcement discretion and appears to be filed within the statute of limitations, Hinkes said.