US SEC Files Remedies-Related Brief in Ripple XRP Case
The U.S. Securities and Exchange Commission (SEC) has filed its opening remedies-related brief and supporting documents in the long-running Ripple XRP case. The court filing, submitted on March 22, contains sealed documents that provide detailed financial statements and information about post-complaint XRP sales to institutional investors.
The remedies-related briefing is currently not available to the public. However, a redacted version of the briefs will be released on March 26 after both parties have decided which facts should remain confidential, as per the courtโs order.
What Are the Potential Judgments?
Bill Morgan, a lawyer who supports Ripple and XRP, commented on the remedies-related briefing and proposed judgment. When asked if Judge Torres should fine Ripple based on these filings, Morgan responded that he believes it is the form of orders that the SEC wants the court to make.
One potential judgment could involve penalties for selling XRP to institutional investors in violation of Section 5 of the US Securities Act. Judge Torres will consider these arguments and decide whether fines are appropriate.
While an immediate settlement is unlikely, there has been speculation about a possible $10 million settlement. The SEC may argue for a higher amount based on the details revealed in the remedies-related discovery documents.
Ripple Vs SEC Lawsuit Key Dates
The Ripple vs SEC lawsuit is expected to continue beyond the previously extended dates, with a final decision likely to be made next year. The parties have proposed a new schedule for redactions after reply briefs, indicating that their legal battle will extend beyond June.
- March 22: The SEC files its opening remedies-related brief and supporting declarations and exhibits under seal.
- March 25: Parties meet and confer to identify redactions.
- March 26: The SEC files a public, redacted version of the brief as per the requested redactions.
Ripple will file a redacted version of its opposition brief and documents on April 22. The SECโs reply brief will be filed under seal on May 6. Additionally, parties and third parties have until May 20 to file letter motions and opposition related to sealing details in the filings.
Ripple CEO and CTO Support Ethereum
Ripple CEO Brad Garlinghouse and CLO Stuart Alderoty have expressed their support for Ethereum (ETH) and the Commodity Futures Trading Commission (CFTC) in their fight against the SEC. The SEC has opened investigations to determine whether Ether should be classified as a security, while the CFTC argues that ETH is a commodity.
Garlinghouse believes that the SEC will lose this battle, just as they did with XRP. Alderoty has called for intervention from the U.S. Congress.
In addition, Ripple has filed a new lawsuit against the SEC for failing to provide documents explaining why former Director William Hinman and former SEC Chairman Jay Clayton stated that ETH was not a security.
Meanwhile, XRP is currently trading at over $0.61, experiencing a more than 2% drop in the last 24 hours. Traders remain skeptical, especially with a 40% decrease in trading volumes during this period.
Hot Take: Ripple XRP Case Heats Up
The recent filing of the remedies-related brief by the SEC marks another significant development in the ongoing legal battle between Ripple and the regulatory agency. With sealed documents containing crucial financial information and sales details, the case is entering a critical phase.
As both parties continue to present their arguments and evidence, the potential judgments and outcomes of this case become clearer. The courtโs decision on fines for violating securities laws and the overall impact on Ripple and XRP will shape the future of the cryptocurrency industry.
Furthermore, Rippleโs support for Ethereum in its own legal battle against the SEC highlights the interconnectedness of these cases and their potential implications for the broader crypto ecosystem.
Stay tuned for more updates as this high-profile lawsuit unfolds.
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