Unlikely Settlement in Ripple vs. SEC as SEC Insists on $2 Billion Penalty
Ripple’s Chief Legal Officer, Stuart Alderoty, has provided insights into the upcoming court proceedings in the ongoing legal dispute between Ripple and the SEC. While there have been rumors of a possible settlement, Alderoty dismissed these hopes by stating that Ripple will submit its response to the SEC’s request for penalties by April 22, with the SEC having until May 6 to reply.
Let’s take a closer look at the case and the upcoming deadlines. The chances of a settlement in the SEC vs. Ripple case appear slim, as Alderoty clarified the upcoming deadlines. Ripple is expected to submit its opposition brief to the SEC’s opening brief by April 22.
Alderoty addressed the confusion surrounding the next steps in the SEC vs. Ripple case, emphasizing that Ripple’s response to the SEC’s penalty request will be filed by April 22, and the SEC will have until May 6 to respond. Due to the dismissal of charges against Ripple, there will be no final pretrial conference.
Interestingly, Alderoty rejected the notion of a pretrial and settlement, stating that it is no longer relevant in the Ripple vs. SEC case. Instead, Ripple will focus on responding to the SEC’s penalty request by April 22, 2024.
However, Ripple’s penalty for violating US securities laws may be influenced by factors such as pre-complaint sales of XRP to US institutional investors, post-complaint breaches, and financial harm to investors. In its defense, Ripple may reference the Morrison vs. NAB case, highlighting the SEC’s jurisdiction over sales made in the US.
If Ripple can demonstrate that the majority of pre-complaint proceeds came from non-US investors and prove that there were no post-complaint sales to US investors or financial harm, it could significantly reduce the penalty. An unredacted version of Ripple’s opposition brief is expected by April 24.
Alderoty emphasized the significance of May 6, 2024, as the deadline for the SEC to respond to Ripple’s stance on penalties. These deadlines indicate progress towards resolving penalty issues in court. However, it is important to note that this does not guarantee the overall conclusion of the lawsuit, as there are ongoing legal complexities.
Despite recent developments, including the dismissal of charges against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen, uncertainties remain as the SEC continues to seek penalties of nearly $2 billion. However, the SEC’s chances of obtaining this penalty seem slim, following the setback in the Govil lawsuit ruling, which stated that the SEC cannot demand substantial disgorgement awards without demonstrating investor losses.
The market sentiment for XRP has been affected by the case proceedings, with the cryptocurrency currently priced at $0.4921, indicating a 1.45% decline. The XRP community is concerned about the lack of upward movement, partially attributed to the ongoing legal battles and Ripple’s release of XRP from escrow. Despite these challenges, the increase in active XRPL liquidity pools provides hope and optimism among XRP supporters.