SEC to Unveil Latest Filing Against Ripple in XRP Lawsuit. Here’s When

The legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple continues to unfold, with the SEC recently filing its opening brief on remedies under seal.

This development was shared by prominent pro-XRP attorney James K. Filan, who highlighted that the brief and supporting documents were not immediately accessible to the public due to the presence of sensitive information.

Public Access Timeline

The sealed documents will undergo a redaction process to remove any confidential details before being made available. This process will involve collaboration between the SEC and Ripple.

Their first meeting to determine the necessary redactions is scheduled for March 25, 2024. Following the implementation of these redactions, the SEC will file a public version of its remedies brief on March 26, 2024.

Reasoning Behind Sealing

The decision to file the documents under seal aligns with sealing requests submitted by both parties earlier in the week. This approach aims to protect sensitive information belonging to Ripple, third parties, and potentially the SEC.

For instance, Ripple has a vested interest in shielding certain financial data and details of contracts used for XRP sales to institutional clients after the lawsuit began in December 2020.

The SEC previously requested Ripple’s financial statements from 2022 to 2023, along with post-complaint contracts related to institutional sales. The SEC likely intends to utilize this information to bolster its arguments during the remedies phase of the lawsuit.

Potential Repercussions for Ripple

Legal experts have offered varying opinions on the potential consequences for Ripple. Some speculate that the SEC might argue that XRP sales through Ripple’s On-Demand Liquidity (ODL) service also constitute investment contracts, potentially leading to a more substantial fine for the company. Crypto expert Zach Rector has estimated that Ripple could face penalties of up to $3 billion if the court deems ODL sales to be securities.

Next Steps in the Lawsuit

A similar redaction process will be followed when Ripple submits its opposition brief to the SEC’s remedies brief next month. The filing will occur under seal on April 22, 2024, with a subsequent meeting between both parties to determine necessary redactions scheduled for April 23.

Finally, a redacted version of Ripple’s opposition brief will be made public on April 24. The SEC will then have the opportunity to file a reply to Ripple’s opposition, adhering to the same redaction protocol.

Although the XRP lawsuit is ongoing, the SEC seems to be targeting Ethereum. However, Ripple CEO Brad Garlinghouse recently revealed why the SEC will lose against Ethereum like they have against XRP.

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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.