The Ripple lawsuit continues to make headlines as the United States Securities and Exchange Commission (SEC) files its final reply brief and supporting exhibits. Well-known defense lawyer James Filan shared this development, but unfortunately, the motions are currently sealed. However, a redacted version of the filing will be made publicly available on May 8.
In the meantime, the SEC and Ripple’s lawyers will meet today, May 7, to determine the necessary redactions before the documents are unsealed. Legal commentators anticipate that the SEC’s reply will counter Ripple’s arguments against the regulator’s initial remedies brief.
To provide some background, the SEC requested the court to impose a hefty fine of nearly $2 billion on Ripple for violating federal securities laws through its sale of XRP to institutions. This request was made after Judge Analisa Torres ruled in July that Ripple had indeed violated securities laws in the past.
The SEC also called for an injunction to be placed on Ripple to prevent any future violations. However, Ripple has opposed these demands, arguing that both the injunction and disgorgement are unnecessary. They believe that the civil penalty should not exceed $10 million, contrasting with the SEC’s request for $876 million.
It is expected that the SEC will present counterarguments to Ripple’s claims and explain why the court should grant its requests.
The SEC’s reply brief has sparked discussions among XRP enthusiasts about the potential timeline for the lawsuit’s resolution. One prominent figure in the XRP community, Ashley Prosper, predicts that Judge Analisa Torres will issue a final verdict between July and September 2024. However, he acknowledges that the parties could reach a settlement before the verdict is announced.
It’s important to note that this timeline is purely speculative, and there is no guarantee that the judge will deliver the final verdict within that timeframe.
There is also speculation about the possibility of an appeal from one of the parties involved. If an appeal is made, the SEC v. Ripple case could extend beyond 2025. The SEC had previously attempted to appeal a summary judgment decision, but Judge Torres prevented this, instructing the agency to wait until all pending issues were resolved. If the court issues a final verdict within Prosper’s projected timeline, the SEC may continue its efforts to overturn Ripple’s victory in the Second Circuit. Alternatively, the regulator could accept the final verdict and choose not to appeal if it favors their position.
It’s important to note that the views expressed in this article are not financial advice, but rather the author’s personal opinions. Readers are encouraged to conduct thorough research before making any investment decisions.
