SEC’s Request for Documents is Still Pending
In a recent development, on January 11, the SEC submitted a formal request to the Southern District of New York Magistrate Judge Sarah Netburn. The request specifically asks the court to mandate Ripple’s submission of financial statements and sales contracts.
Ripple, despite many calls and emails, has yet to present any post-complaint documents. The SEC is requesting two specific documents and one interrogatory, and the request is still pending.
Analyst Pulls the Rug to Millions at stake, What next?
In a YouTube video, Rector highlights the potential billions at stake for Ripple, emphasizing that the SEC claims the company sold about $3 billion worth of XRP since the lawsuit’s initiation. Legal experts anticipate a reduction during the remedies proceeding, but Rector predicts that the final penalty could surpass the $3 billion mark if Judge Torres deems ODL-related sales as securities.
After the recent SEC move, there is a possibility of a negative ruling. If that happens, Rector expects Ripple to file an appeal in the Second Circuit, especially if the judge rules that ODL-related XRP sales constitute an investment contract, showing confidence in legal guidance by likely challenging any such ruling.
It’s Not Over Yet…
As Ripple prepares to respond to the SEC’s motion to compel, the lawsuit’s remedies proceeding is set to conclude by February 12, 2024, with the SEC’s last motion scheduled for April 29, 2024. While there’s no official ruling date, pro-XRP lawyer Fred Rispoli speculates that the judge might issue a decision in early summer, adding a layer of anticipation to Ripple’s legal journey.
The court has given both sides an extra month, on top of the discovery date for remedies, to make their case and weigh their options. There is a lot of talk that a settlement may be on the horizon since dates are coming up and Ripple and the SEC have had a history of bad blood in the past.
Hot Take
The future of Ripple’s legal battle against the SEC continues to be uncertain, with a potential penalty of $3 billion looming if ODL-related sales are classified as securities. The request for financial statements and sales contracts is still pending, and there is speculation about a possible negative ruling. Both parties are preparing for the next steps, and the possibility of a settlement is on the horizon, adding to the anticipation of Ripple’s legal journey.
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