- The legal battle between Ripple and the SEC has intensified as it nears its climax.
- Ripple’s CLO has definitively denied the rumors circulating about lawsuit settlements.
- Both parties are expected to submit key filings in the coming weeks, which will clarify their next steps.
The legal battle between Ripple Labs and the Securities and Exchange Commission (SEC) inches closer to its climax as a scheduled trial looms next week. This long-running dispute has significant implications for the entire cryptocurrency industry, potentially triggering a surge in XRP’s value or ushering in stricter regulations.
Ripple Lawsuit Nears Penalty Phase
On April 16, both parties were thought to have participated in a final pre-trial conference overseen by Judge Netburn. These conferences typically involve prosecutors and defense attorneys discussing the possibility of resolving a lawsuit through mutual agreement instead of going to trial.
Fueling speculation of a settlement, some reports suggested the pre-trial conference signaled progress towards such an outcome. However, Ripple quickly squashed these rumors. Stuart Alderoty, Chief Legal Officer at Ripple, clarified the next steps in the case.
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He confirmed that Ripple will submit their response to the SEC’s proposed penalties by April 22, with the SEC expected to offer a counter-response by May 6.
Alderoty further emphasized there wasn’t a final pre-trial conference in the traditional sense since the SEC already dismissed charges against two individual defendants, Brad Garlinghouse and Chris Larsen.
Ripple Case Nears Verdict
The focus now shifts towards the trial, scheduled for April 23. Many believe Ripple might hold a strategic advantage after securing three partial victories in court throughout 2023. A favorable outcome for Ripple could trigger a price surge for XRP, the company’s native cryptocurrency.
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Conversely, a loss could hinder cryptocurrency industry growth and pave the way for stricter regulations. Ripple’s legal team is actively preparing their next moves. They are expected to file a critical opposition brief soon, followed by a redacted version on April 24.
This will be followed by the SEC’s response on May 6. These filings will likely open the door for further discussions between the parties, potentially involving third-party interveners. The Ripple case isn’t the only one shaping the future of cryptocurrency regulations.
Next Dates to Watch:
- April 22, 2024: Ripple submits its opposition brief outlining its arguments against the SEC’s case.
- April 23-24, 2024: Depending on confidentiality needs, discussions may be followed by a public filing of Ripple’s redacted brief.
- May 6-8, 2024: The SEC responds with its reply brief, which could be followed by redaction discussions and a public filing.
- May 20, 2024: The deadline for public opposition to motions to seal any remaining case materials.
The sealing process concludes with both parties filing motions to seal any remaining materials related to the remedies briefing. Public opposition to these motions can be filed by May 20, 2024. This structured approach ensures the public is informed of the case’s progress while safeguarding sensitive business information.
On the Flipside
- While Ripple has secured some pre-trial wins, the final judgment from the court could still favor the SEC.
- The upcoming filings and pre-trial discussions could still lead to an agreement before the case goes to trial.
Why This Matters
While a settlement remains possible, exchanging legal briefs and the approaching trial date underscore the case’s impending conclusion. This verdict will hold significant weight for the entire crypto market, potentially triggering a boom for XRP or a regulatory winter that chills innovation across the industry.
A recent court ruling could impact the SEC’s lawsuit against Ripple. Is the SEC’s case against Ripple weakening? Find out here:
SEC’s Recent Loss Rocks Ripple Lawsuit: Is It Game Over?
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