Ripple vs. SEC: The Latest Update Unveiled ๐
Last week, the legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) progressed to trial, with many expecting a resolution to be on the horizon. Attorney James K. Filan announced a new schedule from Magistrate Judge Sarah Netburn, focusing on the motion for remedies and final judgment. The SEC is required to respond by April 29, with Ripple having three business days to reply afterward.
A Pivotal Week For Ripple And SEC ๐
Magistrate Judge Sarah Netburn has laid out a timeline for the ongoing lawsuit between Ripple Labs and the Securities and Exchange Commission (SEC). This timeline revolves around Rippleโs efforts to dismiss the SECโs latest expert evidence supporting its argument for penalties and a conclusive ruling. Judge Netburn has granted the SEC an extension until April 29, 2024, to file their counterarguments to Rippleโs motion. Ripple will then have three business days to respond.
This new schedule comes after Judge Netburn was recently appointed as District Judge in the Southern District of New York. Despite her new role, she continues to preside over the Ripple vs. SEC case, known for her fair and impartial decisions that are well-received by the crypto community.
โMy understanding about XRP is that not only does it have a currency value, but it has a utility, and that utility distinguishes it from bitcoin and ether,โ the judge said in 2021 (according to attorney Jeremy Hogan).
XRP has challenged the SECโs request for significant civil penalties, denying the accusations and seeking a maximum penalty of $10 million. Ripple argues that the SECโs claims are unfounded and lack substantial evidence to support them.
The Anticipated Outcome ๐
Bill Morgan, representing Ripple, has consistently argued over the past three years that Ripple On-Demand Liquidity (ODL) sales do not constitute investment contracts. Morgan asserts that the nature of ODL transactions differs from traditional investments, as customers use XRP for brief periods to facilitate cross-border payments, rather than for investment purposes.
Ripple emphasizes that the SEC has failed to demonstrate any likelihood of future violations or reckless disregard in its XRP sales, citing the Govil case to challenge the SECโs disgorgement claim, pointing out the absence of evidence of financial harm.
Attorney Jeremy Hogan recently speculated that the lawsuit could reach a conclusion by the summer, foreseeing a settlement of $100 million:
โI believe the Judge will order no disgorgement but will throw the SEC a bone by imposing a $100 million penalty on Ripple.โ
Earlier, the SEC had demanded a $2 billion fine from Ripple, alleging violations in specific XRP transactions. Ripple contended that XRP should not be categorized as a security, arguing that it falls outside the SECโs regulatory jurisdiction. Stuart Alderoty, the companyโs chief legal officer, presented compelling reasons why the penalty should not surpass $10 million.
Final Thoughts on The Ripple-SEC Legal Battle ๐ค
In conclusion, the ongoing legal confrontation between Ripple and the SEC continues to unfold, with the trial moving forward and a resolution potentially on the horizon. Stay tuned for further updates as this high-profile case progresses.
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