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Ripple vs SEC Case: Why May 6, 2024 Is Crucial to XRP

The ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) reaches a critical juncture on May 6, 2024. The SEC is anticipated to submit a reply brief in response to Ripple’s opposition to the hefty penalties proposed by the regulator. This reply brief has the potential to significantly impact the future of XRP sales, particularly for institutional investors.

Court’s Previous Ruling and SEC’s Response

In July 2023, a court judgment found Ripple violated federal securities laws concerning XRP sales to institutions. Although the court ruled that non-institutional XRP sales did not violate securities laws, the regulator could go after Ripple for institutional sales, prompting the request for substantial financial penalties against Ripple.

Read Also: How SEC Interlocutory Appeal In XRP Lawsuit Could Safe Crypto, Analyst Explains

The proposed penalties include a civil penalty of $876.3 million, disgorgement of an additional $876.3 million, and prejudgment interest of $198.15 million, totaling nearly $2 billion.

Furthermore, the SEC’s opening brief, filed in March 2024, not only advocated for the aforementioned penalties but also sought to restrict Ripple from further XRP sales to institutional investors. The SEC alleges that Ripple continued these sales even after the initial complaint was filed.

Ripple’s Counterarguments

Ripple countered the SEC’s claims in its opposition brief submitted last week. Their arguments centered on the nature of XRP sales post-complaint. Ripple asserted that these sales were conducted through On-Demand Liquidity (ODL) transactions, exempt from U.S. securities laws. These transactions, they argued, involved accredited investors and were facilitated by Ripple’s Singapore branch, which falls under the regulatory purview of Singapore’s central bank.

Additionally, Ripple president Monica Long revealed that ODL transactions were halted after the SEC filed charges, further emphasizing the company’s compliance efforts. Notably, these transactions resumed only after the July 2023 judgment, as Ripple had ceased all XRP sales during the legal proceedings.

Read Also: Ripple vs. SEC Lawsuit Key Dates Revised. Here Are The New Dates

May 6 Reply Brief and Potential Outcomes

The SEC’s reply brief, anticipated on May 6, is expected to address Ripple’s counterarguments. Experts predict that the SEC will likely maintain its stance on disgorgement and pursue an injunction to restrict Ripple from future XRP sales to institutional buyers. Additionally, the SEC’s recent opposition to Ripple’s motion to strike new expert materials suggests a strategy focused on strengthening their case.


These upcoming filings are expected to be the final submissions before Judge Analisa Torres issues a ruling on the penalty for XRP sales to institutional investors. The court’s decision will have significant ramifications for the future of XRP and its use within the financial landscape, particularly for institutional adoption.

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Tobi Loba
Tobi Loba
Tobi Loba is a passionate writer with a vast interest in the stock market. She joined the crypto ecosystem about three years ago and has written lots of ebooks and articles in relation to cryptocurrency and blockchain projects. Tobi Loba earned her degree at the University of Ibadan.

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