In a recent development, the United States Securities and Exchange Commission (SEC) has filed its final remedies-related reply brief and supporting exhibits in the ongoing Ripple lawsuit. The motions, as confirmed by popular defense lawyer James Filan, are currently sealed. However, a redacted version of the filing is set to be made public on May 8th.
Legal commentators anticipate that the SEC’s reply brief will counter Ripple’s arguments against the regulator’s opening remedies brief. This brief follows the SEC’s request for a nearly $2 billion fine against Ripple for violating federal securities laws through its institutional sales of XRP. Notably, the SEC seeks an injunction against Ripple to prevent future violations.
Expectations From Ripple’s Defense
Ripple, in response, opposed the SEC’s demands, arguing against the necessity of an injunction or disgorgement. The company emphasized that the civil penalty should not exceed $10 million, contrasting the SEC’s sought-after $876 million.
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Industry commentators have speculated on the potential timeline for the final resolution of the lawsuit. Ashley Prosper, a prominent figure in the XRP community, suggests that Judge Analisa Torres could issue her final verdict between July and September 2024. However, Prosper acknowledges the possibility of a settlement between the parties before the verdict is reached.
Potential Appeals And Prolonged Litigation
There are anticipations regarding potential appeals following the final verdict. Should one of the parties decide to appeal, the SEC v. Ripple case might extend beyond 2025. Previously, the SEC tried to appeal a summary judgment decision, but Judge Torres deferred it until resolving all pending issues.
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Depending on the outcome, the SEC could continue its bid to overturn Ripple’s victory or accept the final verdict without appeal. As the SEC’s reply brief remains sealed until its public release, the Ripple lawsuit continues to draw attention from both legal experts and enthusiasts.
The eventual resolution remains uncertain, with possibilities ranging from a settlement between the parties to a prolonged legal battle extending into the next several years.
