Ripple Vs SEC Update: Important Make or Break Moment In Lawsuit, XRP Price

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This week becomes crucial in the Ripple vs. SEC lawsuit as Ripple Labs readies its opposition to the U.S. Securities and Exchange Commission’s proposal for remedies, which includes penalties amounting to almost $2 billion. The SEC has asked Judge Torres for a final judgment, while Ripple plans to file its sealed response on April 22. The unredacted version of the filing is expected to be made public approximately a few days afterwards.

US SEC Seeks $2 Billion Penalties in Remedies-Related Briefing

The SEC in the United States filed a final brief with the court asking for judgment against Ripple, requesting payment of $876.3 million in disgorgement, $198.2 million in pre-judgment interest, and an additional $876.3 million as a civil penalty. The SEC maintains that these penalties are justified due to Ripple’s infringement of Section 5 of the Securities Act of 1933 and their unregistered institutional sales of XRP.

Ripple’s leaders were shocked that the SEC proposed penalties totaling nearly $2 billion without any allegations of fraud or valid contract issues being raised. A meeting for settlement between the parties in late March did not resolve disagreements, according to Ripple’s Chief Legal Officer Stuart Alderoty, who expressed his concern, “Something isn’t working right,” as the SEC continues to litigate against eight major crypto cases.

Ripple’s Response to US SEC in Remedies-Related Briefing

On April 22, Ripple is required to submit a redacted opposition brief, accompanied by declarations and related documents, in the ongoing lawsuit against the SEC. Confidential or highly confidential materials identified by the SEC will remain concealed. However, Ripple may also make public versions of designated exhibits available as stipulated in the previous protective order.

Following a meeting held on April 23, Ripple’s legal team will release a publicly available, redacted version of their opposition brief on April 24. In this document, they will present arguments against the SEC’s proposed $2 billion penalty demand, recognizing the SEC’s allegations as plausible but disputing the severity of the punishment. Additionally, both parties may discuss programmatic sales and secondary market transactions during their ongoing negotiations. Ripple is expected to submit further claims in their original opposition filing, which will be made public next week.

Ripple plans to bring up a court ruling from the Aron Govil case in their defense, which states that if a seller has not caused any financial harm to the buyer, the Securals and Exchange Commission (SEC) cannot demand compensation. The SEC claims that institutional investors have sustained approximately $480 million in damages due to alleged discrimination. Furthermore, Coinbase’s understanding of secondary market transactions being considered non-securities may also be included in their opposition argument.

On May 6th, the SEC is scheduled to submit its sealed reply brief to the court. Additionally, both parties and third parties must file their letters outlining any objections to the confidential information in the filings by May 20th.

XRP Price Soars Ahead Ripple’s Filing in SEC

Currently, XRP is priced above $0.5 and has risen by over 5% within the past 24 hours. Bullish traders continue to support XRP as Ripple submits their opposition in the ongoing case, potentially bringing clearer directions for the future. According to CoinGape Markets, if this upward trend continues, XRP could reach the significant milestone of $0.55.

The interest in XRP futures and options has gone up since the Bitcoin halving, with a 4% surge over the past day and a further 3% uptick in just a few hours. This trend indicates a possible turnaround towards $0.60 for XRP futures. Though the growth is minimal at present, it’s anticipated to significantly escalate following recent filings.

Ripple Vs SEC Update: Important Make or Break Moment In Lawsuit, XRP Price

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2024-04-20 13:28