Remedies Heating Up
After the recent victory for Ripple in the case against the SEC, there is now anticipation regarding the final settlement. Legal expert John E. Deaton believes that the SEC will seek a substantial amount of money as a result of their embarrassment. However, lawyer Bill Morgan explains that settling will not be as straightforward as writing a check.
Morgan points out that the remedies phase of the proceedings will likely be heavily litigated and protracted, based on letters sent by both parties to the court. The SEC had claimed that this phase would involve additional fact and expert discovery.
Issue of Jurisdiction
Furthermore, Ripple argues that the remedies phase will also determine whether the SEC has jurisdiction over institutional sales transactions. Ripple claims that many of these sales did not involve the United States, and this issue has yet to be ruled on by the court.
Another crucial issue is whether post-complaint sales of XRP to sophisticated commercial counterparties violated securities laws. Most of these sales were made to on-demand liquidity customers for cross-border payments.
Hot Take: The Complexity of Settling
Lawyer Bill Morgan concludes that settling with the SEC will not be as simple as Ripple writing a check. He highlights the importance of various issues, including jurisdiction and violations of securities laws. It is clear that this case will continue to be heavily contested and may involve extensive litigation in the remedies phase.
At present, XRP is trading at $0.54974, experiencing a slight decline of 1.23% for the day. However, it has seen an overall increase of 7.93% over the week and a gain of 10.13% on its monthly chart.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative and carries risk to your capital.
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