The United States Securities and Exchange Commission (SEC) has submitted its final response and supporting evidence in the Ripple lawsuit regarding remedies. James Filan, a well-known defense lawyer, revealed this update, noting that the motions are currently sealed. The SEC’s filing will remain confidential until May 8, when a redacted version will be made public. Today, May 7, the SEC and Ripple’s attorneys will meet to determine which parts of the documents need to be redacted before they are unsealed.
While the SEC’s response is still undisclosed, legal experts anticipate that it will counter Ripple’s arguments against the regulator’s initial remedies brief. It is worth noting that the SEC requested a fine of nearly $2 billion against Ripple for violating federal securities laws through its institutional sales of XRP. This request followed Judge Analisa Torres’ ruling in July, which determined that the San Francisco-based company had indeed violated securities laws in the past.
In its initial remedies brief, the SEC also called for an injunction to prevent Ripple from committing future violations. However, Ripple opposed these demands, asserting that both an injunction and disgorgement were unnecessary. The company argued that the SEC failed to demonstrate the need for such actions and suggested that the civil penalty should not exceed $10 million, significantly less than the $876 million sought by the SEC.
The SEC is expected to counter Ripple’s arguments and provide reasons why the court should grant its requests over Ripple’s objections.
The SEC’s response has sparked speculation among XRP enthusiasts regarding the timeline for a final resolution of the lawsuit. Ashley Prosper, a prominent figure in the XRP community, predicted that Judge Analisa Torres would deliver her final verdict between July and September 2024. He also acknowledged the possibility of a settlement before the verdict is issued and expressed his determination to endure the process, regardless of the outcome.
It is important to note that this timeline is purely speculative, and there is no guarantee that the judge will issue a final verdict within the suggested timeframe.
There is also speculation about the possibility of an appeal. Prosper previously stated that he expects one of the parties to appeal the ruling, which could extend the duration of the SEC v. Ripple case beyond 2025. The SEC had already attempted to appeal a summary judgment decision in Ripple’s favor, but Judge Torres halted the process, instructing the regulatory agency to wait until all pending issues were resolved. If the court issues a final verdict within Prosper’s projected timeline, the SEC could continue its efforts to overturn Ripple’s victory in the Second Circuit. Alternatively, the SEC may choose to accept the final verdict and forgo any further appeals if the ruling favors the regulator.
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