The long-running legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple is nearing a conclusion. The SEC recently submitted its final reply brief and supporting exhibits related to potential remedies in the case. This development was shared on X by well-known attorney James Filan.
While the specific contents of the SEC’s filing are currently confidential, they are expected to be unsealed in a redacted format on May 8, 2024. Before public release, Ripple and the SEC will meet to determine the necessary redactions to protect sensitive information.
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Expected Content of the SEC’s Reply Brief
Legal experts anticipate the SEC’s reply brief will directly address arguments presented by Ripple in its opposition to the regulator’s initial proposal for remedies.
In its opening brief, the SEC requested a substantial financial penalty of nearly $2 billion against Ripple, claiming the company violated federal securities laws through its institutional sales of XRP. This position stemmed from Judge Analisa Torres’ July 2023 ruling, which found that Ripple’s past XRP sales to institutions constituted unregistered securities offerings.
The SEC further sought an injunction to prevent future violations by Ripple. However, Ripple opposed the proposed financial penalty and injunction, arguing the SEC failed to demonstrate their necessity. Additionally, Ripple countered that the requested civil penalty was excessive, proposing a maximum penalty of $10 million.
Potential Timeline for Resolution
The SEC’s reply brief has sparked speculation within the XRP community regarding the lawsuit’s potential timeline. Ashley Prosper (@AshleyPROSPER1) responded to Filan’s post predicting that Judge Torres could issue a final verdict sometime between July and September 2024.
Prosper also acknowledged the possibility of a settlement between the parties before the final verdict. He expressed his unwavering support for the XRP community regardless of the outcome.
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— TimesTabloid (@TimesTabloid1) July 15, 2023
Read Also: Ripple vs SEC Case Update as of March 15, 2024. Crucial Dates Released
Another prominent attorney recently predicted that both parties will appeal after the final ruling. If they appeal, he believes the case could extend into 2025. The court initially denied the SEC’s request to appeal the ruling from July 2023, but this shows the regulator’s intentions.
Depending on the final verdict’s content, the SEC could potentially renew its appeal efforts in the Second Circuit Court. Conversely, if the verdict favors the SEC, the regulator might accept the ruling and forego an appeal. Consequently, Ripple might appeal if asked to pay a large settlement.
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