- The SEC is set to submit its reply brief on May 6, following Ripple’s recent filing on April 22.
- Ripple countered the SEC’s allegations in its brief.
- XRP market participant Ashley Prosper speculates on the possible outcomes of the legal battle.
The SEC is set to submit its reply brief in its ongoing legal battle with Ripple. This article delves into the details of the case and speculates on possible outcomes.
SEC to Submit Reply Brief in Ripple Case
The ongoing legal battle between Ripple Labs Inc. and the US Securities and Exchange Commission (SEC) is reaching another crucial point. Following Ripple’s brief on April 22, the SEC is preparing to submit its reply brief on May 6. This development comes after the SEC’s opening brief on March 22, after which Ripple was granted an extended deadline to submit its opposition brief.
Ripple Counters SEC’s Allegations
In its opposition brief, Ripple countered expert testimony and other exhibits presented in the SEC’s opening brief. The extended deadline allowed Ripple to build its defense and address the SEC’s allegations in an attempt to reduce the potential penalty. However, the SEC’s imminent reply brief is expected to respond to Ripple’s arguments and reinforce its stance on the appropriate penalties for the alleged securities violations.
Speculations on the Legal Battle’s Outcome
Ashley Prosper, an XRP market participant, recently commented on the upcoming legal phase, stating, “Tomorrow we see the final reply from the SEC in the remedies phase of the #Ripple lawsuit. After that, we wait until July or August, maybe even September, for Judge Torres’s final ruling.” Prosper also speculated on the possibility of appeals from either party following the ruling and suggested that the duration of such requests may be shorter than anticipated. Furthermore, he opined that a settlement could occur before or during the appellate process.
Financial Implications for Ripple
According to the ongoing case, Ripple sold $770 million worth of XRP to institutional clients. However, market experts have put out different figures regarding Ripple’s potential fine. Legal expert John Deaton insisted that the SEC may be unable to exact the full $770 million from Ripple. On the other hand, crypto analyst Zach Rector has suggested a higher figure of up to $3 billion. At the conclusion of the briefing phase, the court will deliberate on the arguments presented, after which a verdict will be pronounced. Should Ripple be liable, the verdict will also specify the financial penalty.
Conclusion
The ongoing legal battle between Ripple and the SEC is reaching a crucial phase with the SEC set to submit its reply brief. The outcome of this case could have significant financial implications for Ripple and could set a precedent for future cases involving cryptocurrencies. As the crypto world watches closely, only time will tell the final outcome.
