The legal battle between Ripple and the US Securities and Exchange Commission (SEC) reached a critical juncture today November 9, 2023. Both parties were supposed to jointly propose a briefing schedule today, which would determine the future course of action in the case.
However, as of the time of writing, no court document relating to a briefing schedule has been filed, signaling a lack of communication between Ripple and the SEC. This has raised concerns that the two parties may fail to agree on the way forward, potentially necessitating court intervention.
The absence of progress in negotiations is troubling, suggesting that a settlement is unlikely. Pro-XRP legal expert John Deaton has previously expressed his belief that the SEC is determined to extract a $770 million fine from Ripple, fueled by a sense of anger and embarrassment.
If Deaton’s assessment holds true, the SEC may refuse to compromise, even if it means proceeding to trial. Such an outcome would constitute a significant setback for Ripple, despite the company having secured three consecutive victories against the Commission thus far.
Moreover, the SEC’s obstinacy could have broader implications for the entire cryptocurrency industry. A protracted legal battle would further delay regulatory clarity for digital assets, stifling innovation and investment.
Consequences of a No-Deal Scenario
In the event that Ripple and the SEC fail to reach an agreement, the case would head to trial, presenting a substantial risk for both parties given the unpredictability of the outcome.
A favorable ruling for Ripple could potentially set a precedent that hampers the SEC’s ability to regulate cryptocurrencies, ushering in a more favorable regulatory environment for the industry as a whole.
Conversely, if Ripple were to lose the trial, it may face severe financial penalties and other sanctions, with far-reaching consequences for the company and the XRP community.
The coming days will prove pivotal in determining the trajectory of the Ripple vs. SEC lawsuit. The inability of the two parties to establish a briefing schedule could plunge them into a prolonged legal battle, the consequences of which remain uncertain.
Read Also: Jeremy Hogan: SEC Faces Another Loss As No XRP Holder Lost Money Because Ripple
Presently, Ripple holds the upper hand, but the SEC’s unwavering stance has the potential to derail the company’s plans.
Meanwhile, the case has made Ripple spend about $150 million, with much more still to be spent if both parties fail to reach a compromise.
Notably, the entire cryptocurrency industry hangs in the balance, as a protracted legal struggle would only exacerbate the existing delays in achieving regulatory clarity for digital assets.
It is worth noting that the SEC has yet to file its response to Judge Torres’ order. There remains a possibility that the Commission will accept a briefing schedule, even if not entirely content with it. However, if the SEC refuses to compromise, a no-deal scenario could unfold, resulting in an extended legal battle.
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