Ripple XRP Case Highlights: Lawyers On Odds Of Settlement And Final Ruling Date

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As a crypto investor with some experience in the market, I’m closely following the developments in the Ripple XRP case against the SEC. The outcome of this lawsuit is significant for the entire crypto industry and could provide much-needed regulatory clarity.

As a crypto investor, I’m closely following the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). This high-stakes lawsuit not only sheds light on the cryptocurrency industry as a whole, but also holds significant implications for regulatory clarity. Recently, the SEC suffered setbacks in their legal actions against Ripple’s executives, Christian Larsen and Brad Garlinghouse.

The CEO of Ripple, Garlinghouse, disclosed that the company has invested more than $200 million in their legal battle against the SEC’s excessive actions. XRP holders are currently in anticipation of the judge’s ruling on the motions seeking final judgments during the remedies phase.

Lawyers’ Views on Settlement, Appeal, Final Ruling Timeline, More

In anticipation of the upcoming decision regarding the imposition of approximately $2 billion in penalties in the US Securities and Exchange Commission (SEC) vs. Ripple Labs legal battle, prominent legal figures, including ex-SEC attorneys, have shared their insights on potential outcomes in this high-profile crypto case.

Potential Settlement

Experts, such as lawyers Marc Fagel and James Farrell, who have previously worked for the SEC, are optimistic that a settlement between the SEC and Ripple is still a possibility. However, Jeremy Hogan, a partner at law firm Hogan & Hogan, notes that while a settlement can still occur, it’s becoming less likely given recent favorable rulings for Ripple in the ongoing lawsuit.

Yes, it could still be settled before the final judgment but very unlikely.

— Jeremy Hogan (@attorneyjeremy1) June 26, 2024

The Securities and Exchange Commission (SEC) aims to unseal hidden filings, as they are essential for making decisions regarding Ripple Labs’ current assets, sales figures (relevant to injunctive relief, penalties), revenues and expenses (for disgorgement), and the magnitude of discounts offered to certain institutional investors (impacting investor harm). Ripple Labs has opposed this stance from the SEC, maintaining that past contracts remain relevant to their business.

Appeal Against Judge Torres’ Summary Judgment

The probability of the Securities and Exchange Commission (SEC) challenging Judge Torres’ ruling that XRP does not qualify as a security based on the Howey Test is slim, according to Kristina Littman, a former head of the SEC’s Crypto Enforcement Unit. Instead, the SEC might choose to leave Judge Torres’ decision as a lower court ruling without taking it to the appellate level.

As a crypto investor, I’m thrilled to share some exciting news that recently came out of the Second Circuit Court. The court ruled in favor of Coinbase, determining that secondary sales of cryptocurrencies do not classify as securities. This decision reinforces Judge Torres’ previous ruling on XRP programmatic sales. Coinbase’s Chief Legal Officer, Paul Grewal, announced this significant victory for the crypto industry on Twitter.

Lawyer James Murphy, famously referred to as MetaLawMan, shares the view that the tokens in question in the Coinbase lawsuit do not meet the criteria for being classified as securities.

Tristan Leavitt, the president of Oversight, expressed concern over the large number of ‘no relevant records’ responses received from the Securities and Exchange Commission (SEC). To shed more light on this matter, a fresh Freedom of Information Act (FOIA) request has been submitted to urge the SEC for access to additional records.

Final Ruling Date

Lawyers, including Fred Rispoli, have proposed that Netburn and Torres could discuss and decide collectively that the matter before Netburn (regarding the SEC’s “expert witness” in the Ripple case) doesn’t necessitate a ruling. If the decision favors Ripple, Judge Torres could skip over the expert witness and announce a final judgment on remedies and injunction directly.

Lawyers anticipate that Judge Torres will issue her final ruling on the matter much sooner than a summary judgment, approximately within two to three months following the submission of the last brief. However, due to recent developments such as election-related delays, the XRP community should expect a decision no earlier than August or September.

The U.S. SEC and Ripple can also settle arguments not addressed by judges in the ruling.

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2024-06-27 14:49