Expert Forecasts Timeline for XRP Lawsuit Verdict: Ripple vs. SEC
Exciting times are on the horizon as the legal battle between Ripple and the SEC nears its conclusion. Experts are eagerly awaiting Judge Torres’ final ruling, which is expected to be delivered in September. While the possibility of a settlement or an appeal remains, it is interesting to note that the price of XRP has increased by 5% in just one week and could potentially reach $1. This surge in price followed the submission of the SEC’s final reply brief and supporting exhibits regarding remedies in the Ripple lawsuit.
Renowned defense attorney James Filan provided an update on the matter yesterday, stating that the motions are still sealed. Filan mentioned that the SEC’s filing will remain sealed until May 8, when a redacted version will be made available to the public. Notably, representatives from the SEC and Ripple will meet today, May 7, to determine the necessary redactions before unveiling the documents.
Although the contents of the SEC’s reply brief remain undisclosed, legal analysts speculate that the documents will counter Ripple’s arguments against the regulator’s initial remedies brief. Previously, the SEC requested a substantial fine of nearly $2 billion against Ripple for violating federal securities laws through its sales of XRP to institutional investors. This request came after Judge Analisa Torres ruled last July that the San Francisco-based company had indeed breached securities laws.
In its initial remedies brief, the SEC sought a stay against Ripple to prevent any future violations. Ripple, on the other hand, argued that the SEC’s injunction and disgorgement were unnecessary. The company claimed that the SEC had failed to provide sufficient justification for these measures and argued that the civil penalty should not exceed $10 million, in contrast to the SEC’s proposed $876 million.
It is expected that the SEC will now present its rebuttal to Ripple’s arguments, providing clarifications as to why the court should favor its requests over those of Ripple.
Various predictions have been made regarding the timeline for the final ruling. Ashley Prosper, a prominent member of the XRP community, believes that Judge Analisa Torres will deliver her decision between July and September 2024. Prosper also acknowledges the possibility of a settlement between the parties. However, it is important to note that these timelines are speculative, and there is no guarantee that the judge will reach a final verdict within the projected period.
Prosper’s prediction aligns with his previous suggestion that one of the parties may choose to appeal the ruling. If an appeal is filed, the SEC v. Ripple case could extend beyond 2025. The SEC has previously attempted to appeal a partial victory for Ripple in a summary judgment decision, but Judge Torres advised the agency to wait until all issues were resolved. Depending on the final verdict and timeline, the SEC may choose to appeal in the Second Circuit or accept the ruling without further action if it favors their position.