Lawyer Bill Morgan responded on social media platform X on Jan. 18 to a post discussing his legal view that the SEC v. Ripple case is effectively closed because “res judicata” bars relitigation. He opined: “That is correct. And the doctrine of Res Judicata refers to both claim preclusion and issue preclusion.”
“ This was a high risk overreach strategy by the SEC in the litigation and it backfired. Strategic level mistakes suck in litigation.”
FAQ ⏰ Is the SEC v. Ripple case legally closed? Yes, res judicata bars the SEC from relitigating claims or issues already decided in the Ripple case. Did the court rule that XRP itself is not a security? Yes, the court found XRP itself is not an investment contract, a point the SEC did not appeal. Can the SEC reopen past XRP sales claims? No, claims tied to Ripple’s XRP sales from 2013 to 2020 are precluded by final judgment. Could future XRP sales still face scrutiny? Any future cases would be limited by issue preclusion from the July 2023 ruling.
