Legal Victory for Ripple Against SEC
In a significant legal development, Ripple, the blockchain solution provider, achieved another win against the US Securities and Exchange Commission (SEC) recently. On October 23, US District Court Judge Analisa Torres dismissed the SEC’s charges against Ripple’s top executives, Brad Garlinghouse and Christian Larsen.
However, this victory does not mark the end of Ripple’s battle against the SEC. The regulatory body is now seeking hundreds of millions of dollars from Ripple to settle the contentious XRP case.
The SEC’s Demands
XRP holders’ legal representative, John Deaton, highlighted that there has been no serious conversation regarding settlement between Ripple’s executives and the SEC. After having its charges denied and dismissed, the SEC is now seeking $770 million from Ripple as a penalty.
This “penalty phase” is like a second legal case that requires extensive documentation and evidence. Ripple aims to reduce the fine by excluding on-demand liquidity (ODL) transactions, cutting costs, and more.
Timeline for Final Judgment
John Deaton believes that the final verdict from Judge Torres is unlikely to come before late summer in 2024. This means that Ripple may face significant legal expenses of tens of millions of dollars while trying to reduce the $770 million fine.
Hot Take: Ripple’s Battle with the SEC Continues
Ripple has celebrated a legal triumph against the SEC as charges against its top executives were dismissed. However, the fight is far from over as the regulatory body seeks a substantial settlement amount. The timeline for a final judgment extends into 2024, indicating that Ripple will face considerable legal expenses during this period. This ongoing legal battle underscores the challenges faced by blockchain companies in navigating regulatory frameworks.
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