Experts Weigh In on Outcome of Ripple vs SEC Lawsuit as Conclusion Approaches
The U.S. Securities and Exchange Commission (SEC) is preparing to submit its final arguments regarding the penalties Ripple should face for selling XRP. One of the key issues at stake is whether Ripple will be allowed to continue using XRP for international payments. Some experts believe that Ripple may emerge victorious in the case or agree to a smaller settlement amount.
The ongoing legal battle between Ripple Labs Inc. and the SEC has reached a crucial stage with a significant filing from the regulatory agency. The SEC’s final remedies reply brief, which will be made public by May 8, is a crucial step in the unfolding drama and will pave the way for the judge’s ruling.
The outcome of the case will determine the implications for specific Ripple sales, particularly those related to Institutional/ODL transactions. The main question is whether a ruling on institutional sales will have an impact on ODL transactions, potentially reshaping Ripple’s future operations.
In addition to the remedies, the ruling will also determine the consequences of alleged securities violations and clarify the status of post-complaint sales of XRP, particularly those involving ODL.
Many observers are skeptical about the SEC’s chances, given their previous setbacks in summary judgment rulings. The court had dismissed three out of four types of XRP sales, stating that they did not meet the criteria of an investment contract under the Howey Test. While the SEC was successful in institutional sales, ODL transactions remained in question.
Important dates to look out for include the public disclosure of the SEC’s final remedies reply brief and supporting exhibits in redacted form by May 8. Subsequently, on May 13, parties will file motions opposing the sealing of related materials.
There is speculation that the potential penalties for Ripple may be relatively modest, with a fine likely under $50 million, and the possibility of Ripple being allowed to continue ODL sales. Attorney Jeremy Hogan has expressed optimism about a potential resolution by this summer, suggesting a settlement agreement of around $100 million between Ripple and the SEC.
The market response to recent updates has been positive, with XRP briefly reaching $0.52 before experiencing a slight decline in the past 24 hours.
The judge’s ruling will ultimately determine whether the SEC’s final brief will be a decisive blow or if Ripple has a chance to make a comeback.