Anticipated Verdict in Ripple vs SEC Case Set for July What to Look Out for
Key Points
– The SEC vs Ripple lawsuit is expected to reach a final verdict in July.
– Negotiations are still possible on unresolved issues, and Ripple can contest high penalties.
– Terraform Labs’ recent heavy fine by the SEC supports Ripple’s argument against excessive penalties.
– Legal experts are discussing the next steps as the legal battle nears its conclusion.
– A significant precedent could be set by Judge Torres’s ruling that XRP’s programmatic sales are not securities contracts.
Will We Finally Get the Verdict We’ve Been Waiting For?
The eagerly anticipated final verdict in the SEC vs Ripple legal battle is on the horizon. Legal experts are speculating on what the next steps may be as the case nears its conclusion. Barring any unforeseen developments from the SEC, the much-awaited final decision is expected to be delivered in July. Experts are predicting that the SEC will likely challenge the summary judgment, which ruled that XRP’s programmatic sales do not constitute securities contracts. This ruling could have far-reaching implications for future cases.
Anticipated Verdict on Remedies
Pro-XRP lawyer Fred Rispoli anticipates that Judge Torres will issue a ruling on remedies by late July or early August, possibly even as early as July 13. The SEC is seeking a substantial penalty of $2 billion, while Ripple is arguing for a much lower fine of no more than $10 million. Rispoli believes that a pre-judgment settlement is improbable, although there may still be room for negotiation on certain unresolved issues. The SEC has the option to appeal the ruling on programmatic sales but cannot contest the dismissal of claims against Ripple executives Brad Garlinghouse and Chris Larsen.
Differing Views on Likelihood of Appeal
Former SEC securities lawyer Marc Fagel disagrees with Judge Torres’s interpretation of the Howey test and expects the SEC to appeal the summary judgment on XRP’s liability. However, he views an appeal on the remedies order as less probable. The debate surrounding the expert witness motion remains contentious, with some lawyers suggesting that Ripple may not succeed in excluding the testimony of expert witness Andrea Fox. Rispoli, however, believes that Judge Torres may not address this issue if her final ruling favors Ripple.
Impact of Terraform Labs Settlement
The recent settlement between Terraform Labs and the SEC has had a significant impact on the SEC vs Ripple lawsuit. Terraform Labs and its co-founder Do Kwon were fined a substantial amount, leading to controversy within the crypto community. Critics such as Coinbase CLO Paul Grewal and Ripple CLO Stuart Alderoty argue that the SEC’s heavy fines do not adequately address fraud victims’ needs.
Ripple’s Stance on Penalty Proportionality
The Terra Luna crisis resulted in a significant loss of investor wealth, drawing attention to the SEC’s enforcement actions. Former SEC lawyer James Farrell noted similarities between the injunction in the Terraform case and Ripple’s arguments regarding penalty proportionality. Ripple maintains that a fine exceeding $10 million would be disproportionate, citing precedents in similar crypto cases.
Don’t Miss:
– Can the $2 billion fine in the Ripple vs SEC lawsuit be reduced? How will the Terraform Labs settlement impact the outcome?
Join the discussion: The SEC vs Ripple lawsuit has sparked lively debate within the crypto community. What are your predictions for the final outcome?
Tags: Ripple (XRP)