The long-running legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has taken a new turn with the SEC filing its final reply brief in the lawsuit’s remedies phase. It marks a significant development in the case which has been closely watched by the crypto industry due to its potential impact on XRP, Ripple’s native cryptocurrency.
While the SEC submitted its reply brief and supporting exhibits, these documents are currently under seal and inaccessible to the public. However, anticipation is building as redacted versions intended for public viewing are expected to be released by May 8th, 2024. Legal experts caution against expecting a final decision on remedies today, emphasizing the established timeline for the case.
The SEC’s reply brief is likely to focus on bolstering its arguments for the remedies it seeks in the lawsuit. This could include a hefty fine for Ripple with some estimates suggesting the SEC might push for a figure as high as $2 billion. Additionally, the brief could address the SEC’s request for a permanent injunction and potentially restrict Ripple’s ability to sell XRP to certain customers.
Legal observers, like lawyer and XRP enthusiast Bill Morgan, highlight the decision on the injunction as a critical point. Whether the court grants the injunction and, if so, to what extent, could significantly impact Ripple’s business operations.
Adding a layer of complexity, Ripple faces a potential legal hurdle. Legal experts believe the judge may allow the deposition of Andrea Fox, an expert witness the SEC introduced in its declaration. Ripple had previously contested Fox’s inclusion, arguing she was submitted beyond the discovery deadline. This expert’s testimony could be crucial in determining if institutional investors suffered financial losses due to Ripple’s actions, a key factor in deciding the penalties Ripple may face.
The outcome of the Ripple vs. SEC case is expected to have a ripple effect (pun intended) on the entire cryptocurrency market. A decision in favor of the SEC could cast a shadow of regulatory uncertainty over other cryptocurrencies, potentially hindering their growth. Conversely, a victory for Ripple could provide much-needed clarity and potentially trigger a rally in XRP’s price.
Despite the ongoing legal battle, XRP’s price has exhibited resilience, currently hovering around $0.53. The recent developments in the lawsuit triggered a brief surge in XRP’s price, pushing it close to $0.57 before retracing slightly.
