SEC’s Redacted Remedies Reply Could Potentially Alter the Outcome of the Ripple vs SEC Lawsuit
Market Split as SEC Submits Sealed Reply Brief in Ripple Case
The market is currently divided as the Securities and Exchange Commission (SEC) submits a sealed remedial reply brief and exhibits in its complaint against Ripple. Today, the redacted copies of this brief will be made public. The case becomes more intriguing as both parties employ strategies to safeguard their interests.
Bill Morgan Counters SEC’s Possible Reply Brief
In a recent article, lawyer Bill Morgan, who supports XRP, highlights the potential implications of a permanent ban on Ripple’s XRP sales. According to him, the regulator’s response holds more significance than the penalty itself.
Morgan focuses on the SEC’s claim that institutional buyers of XRP have suffered financial harm due to Ripple’s actions. He critically examines the SEC’s broad interpretation of pecuniary harm, contrasting it with Ripple’s narrower perspective. He raises compelling questions about the likelihood of disgorgement being ordered and hints at possible grounds for appeal.
Can SEC Prohibit XRP Sales to ODL Customers?
Moving forward, Morgan also scrutinizes the SEC’s request for a permanent ban specifically on Ripple’s sales to customers using its On-Demand Liquidity (ODL) service. He carefully outlines the SEC’s argument that selling XRP to institutions is Ripple’s primary business, expressing concerns about potential future violations. Additionally, Morgan discusses Ripple’s attempt to limit the injunction and the SEC’s counterargument.
Not Everyone Supports Ripple!
Furthermore, Morgan disagrees with Judge Torres’ ruling that classified ODL sales as investment contracts. Simultaneously, he criticizes Ripple’s claim that they lacked clarity in distinguishing these sales from other institutional and programmatic sales during the summary judgment phase. Ripple now faces the challenge of addressing this issue on appeal, as Morgan predicts that the court will likely grant a permanent injunction that also covers ODL sales.
But Some Have a Different Opinion
Attorney Jeremy Hogan announces the completion of the briefs in the Ripple vs. SEC case and shares his view that the SEC’s final response lacks impact. Hogan points out that the SEC does not address ODL sales and merely acknowledges Ripple’s attempt to re-litigate the issue. Furthermore, he notes that the SEC does not introduce any new information regarding damages. With the briefs now finalized, all eyes are on the judge’s decision.
XRP Price Impact
The SEC lawsuit has had a negative impact on the price of XRP, but there is hope for a turnaround. While it is currently trading around $0.53, positive developments in the Ripple vs. SEC case could push the price past $0.55. Derivatives traders are also showing interest, as XRP futures open interest has increased by nearly 4% in the past 24 hours, indicating a bullish trend in the futures market.
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Tags: Ripple (XRP)