SEC Highlights Lawsuit Key Date: What November 9 Meeting With Ripple Mean for XRP?

In the ever-evolving legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC), the meeting and confer session scheduled for November 9 is another important day highlighted by the regulator, which could shape the trajectory of this high-profile case.

During this meeting, the SEC and Ripple will discuss the pending issues in the case and proper remedies to address Ripple’s alleged Section 5 violations related to its institutional sales of XRP.

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Section 5 of the Securities Act of 1933 mandates that securities must be registered with the SEC before being offered to the public, including institutional investors.

Judge Torres’s ruling in July clarified that Ripple’s sales of XRP on public exchanges did not violate securities laws. However, XRP sold to institutional investors falls under the securities classification. Ripple’s alleged transgression of securities laws is the heart of the trial scheduled to commence by April 2024.

The Implications for Digital Assets in the U.S.

The outcome of this lawsuit extends far beyond the immediate parties involved. It could set a significant precedent for how digital assets are treated in the United States.

The determination of XRP’s status for sales to the public has already influenced the crypto market in the U.S. The outcome of this lawsuit will surely have far-reaching effects on the cryptocurrency industry within the country, with potential ripple effects worldwide.

A Potential Resolution

The SEC’s pursuit of a resolution might involve Ripple making a substantial payment, potentially in hundreds of millions of dollars.

This fine would be a substantial financial burden for Ripple, in addition to the legal expenses incurred throughout this protracted legal battle. Garlinghouse once revealed that Ripple had already spent over $100 million. This amount is expected to increase with a prolonged lawsuit.

Read Also: XRP Enthusiasts React To New Ripple-SEC Lawsuit Settlement Speculation

Ripple’s executives have made it clear that recent developments don’t mean a settlement is close. Although the SEC has dropped its cases against Brad Garlinghouse and Chris Larsen, there has been no word on a dismissal of the lawsuit against Ripple.

This feature, however, has brought some relief to the company. With its leadership no longer directly embroiled in the legal proceedings, the executives can focus on growing other aspects of the company’s business.

The November 9 meeting between the SEC and Ripple will be pivotal in the XRP vs. SEC lawsuit. It will significantly affect the crypto industry, and it will be interesting to see what comes out of this case.

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