- Fred Rispoli, a notable lawyer advocating for XRP and founder of HODL Law, has made a bold prediction regarding the outcome of the Ripple vs. SEC case.
- Rispoli referenced a recent legal document, specifically Ripple’s Notice of Supplemental Authority connected to the recent ruling in the Binance case by the US District Court for the District of Columbia.
- This court’s decision ruled that secondary market transactions of BNB tokens did not constitute securities transactions, setting a precedent that Ripple might leverage in their ongoing litigation with the SEC.
Insightful analysis of recent legal developments in the Ripple vs. SEC case and their potential implications for the broader cryptocurrency market.
XRP Lawsuit: Potential Resolution by the End of July?
In a recent social media post, Rispoli remarked, “Just received a notification of a new filing in the SEC vs. Ripple case which made my heart race… but it’s not a verdict yet. It was Ripple’s notice to Judge Torres about last week’s Binance decision.”
Ripple contends that, akin to the Binance ruling, transactions involving XRP on secondary markets do not fit the criteria of securities transactions under US legislation. This argument is crucially based on the application of the “Howey Test,” which is used to determine if transactions qualify as investment contracts.
During an interview with Crypto Moon Amsterdam, Rispoli was questioned about his expectations for the timeline of the ruling. He responded:
July 31, although I could see Judge Torres making the decision on July 13 for symbolic reasons.
He noted that July 13 marks the anniversary of a significant 2023 summary judgment by Judge Torres, which concluded that XRP is not a security. This judgment had a profound impact on the digital asset’s market value, causing a significant price surge shortly after the announcement.
The focus of the lawsuit has shifted from merely questioning the security status of XRP to now addressing the financial penalties Ripple might face. Initially, the SEC aimed for penalties up to $2 billion. Following various legal proceedings, the SEC has drastically reduced its demand to $102 million, a sum Ripple still considers unreasonable.
Earlier, Rispoli commented on the potential for a settlement before a judgment, stating, “A pre-judgment settlement appears unlikely, although some unresolved arguments might still be subject to negotiation.”
Financial Penalties and Market Reactions
He further speculated on the likely penalty for Ripple, suggesting, “The penalty might be less than $25 million with no disgorgement. The judge could permanently enjoin all sales deemed illegal and rule that new contracts referenced by Ripple aren’t adequately presented, forcing the SEC to pursue further legal action if they believe these violate her ruling.”
Interestingly, the price of XRP remained stable following the news, showing no significant deviation from the broader cryptocurrency market trends over the past 24 hours. XRP experienced a slight decrease of -2.6%, coupled with a 24% rise in trading volume.
At the time of reporting, XRP was trading at $0.4764.
Conclusion
In conclusion, the developments in the Ripple vs. SEC case could set a significant precedent for the entire cryptocurrency landscape. The outcome, expected by the end of July, might have extensive implications not just for Ripple, but potentially for the regulatory framework governing other crypto assets as well. Investors and stakeholders should remain vigilant and prepared for potential market shifts resulting from judicial decisions in this landmark case.
