The post Ripple vs. SEC : Settlement Unlikely as SEC Demands $2 Billion Penalty appeared first on Coinpedia Fintech News
In the ongoing legal tussle between Ripple and the SEC, Ripple’s Chief Legal Officer, Stuart Alderoty, has shed light on the forthcoming court proceedings. While the world is buzzing with rumors of settlement, Alderoty dashed hopes of a settlement by stating that Ripple will respond to the SEC’s request for penalties by April 22, with the SEC having until May 6 to reply.
Here’s what’s happening in the case. Step In!
Upcoming Deadlines and Relevance
The chances of a settlement in the SEC vs. Ripple case seem slim, as highlighted on Tuesday. Stuart Alderoty clarified upcoming deadlines, with Ripple set to submit its opposition brief to the SEC’s opening brief by April 22.
No Pre-trial? Ripple to Fight With SEC’s $2Billion Slap
Interestingly, Alderoty rebuffed the Pre-trial and settlement claims, saying it is no longer relevant in the Ripple vs SEC case as Ripple is set to respond to the SEC’s penalty request by April 22, 2024.
However, Ripple’s penalty for breaching US securities laws could be influenced by factors like pre-complaint XRP sales to US institutional investors, post-complaint breaches, and financial harm to investors. In response to the claims, Ripple may reference the Morrison vs. NAB case, emphasizing the SEC’s jurisdiction over US-based sales.
Demonstrating that pre-complaint proceeds were mainly from non-US investors and proving no post-complaint sales to US investors or financial harm could significantly reduce the penalty. An unredacted version of Ripple’s opposition brief is due by April 24.
Alderoty emphasized May 6, 2024, as another crucial date, indicating that the SEC has until then to respond to Ripple’s stance on penalties. These deadlines hint at progress toward resolving penalty issues in court. However, it’s vital to understand that this doesn’t guarantee the lawsuit’s overall conclusion, highlighting ongoing legal complexities.
Penalty Scope
Despite recent developments, including the dismissal of charges against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen, uncertainties persist as the SEC presses forward seeking penalties of nearly $2 billion. However, the SEC’s prospects of obtaining the $2 billion penalty seem bleak. An epic setback occurred in late 2023 with the Govil lawsuit ruling, which found that the SEC couldn’t demand substantial disgorgement awards without demonstrating investor losses.
XRP Price Outlook
XRP’s market sentiment is waning with the case proceedings, with the cryptocurrency presently priced at $0.4921, indicating a 1.45% decline. There is a growing concern within the XRP community regarding the absence of upward movement, partially linked to ongoing legal battles and Ripple’s release of XRP from escrow. Moreover, the increase in active XRPL liquidity pools provides hope amid the sluggish growth, fostering optimism among XRP supporters despite existing challenges.
