After the U.S. Securities and Exchange Commission’s (SEC) recent moves in the XRP lawsuit, Fred Rispoli, senior managing partner at Hodl Law, has shared a new perspective on the case on Twitter.
Aiming to clarify Ripple’s financial operations after the summary judgment in July, with a primary emphasis on the implications of its contracts and institutional sales, the U.S. court has ordered Ripple to reveal its financial statements from 2022-23.
Judge Sarah Netburn disregarded Ripple’s concerns about a potential “mini-trial”, stressing the importance of these documents in determining the consequences for the securities laws violations with institutional sales of XRP. Rispoli, after hearing this, expressed his surprise and re-evaluated his expectations.
#XRPCommunity #SECvRipple My Updated Thoughts:
Well, shoot. I was hoping SEC was moving on to other pastures but I guess not. There is still a chance that SEC eventually concedes after the final order on damages (remember that's probably coming mid-summer) but I'm starting…1/5
— Fred Rispoli (@freddyriz) February 6, 2024
Rispoli’s New Stance on the XRP Lawsuit
Rispoli wrote, “My Updated Thoughts: Well, shoot. I was hoping SEC was moving on to other pastures but I guess not.” He also mentioned the possibility of the SEC conceding after the final order on damages, highlighting the order could come soon, with the end of the lawsuit drawing closer.
However, based on the SEC’s refusal to let Ripple be, Rispoli believes the regulator will appeal the case. He said, “I’m starting to feel this is getting appealed.”
He expanded on the consequences of the court’s verdict, highlighting the SEC’s pursuit of Ripple’s financial disclosures and the emphasis on post-complaint sales as factors that have magnified the significance of the damages component of the case.
Rispoli questioned Ripple’s strategy in disputing the discovery, stating that transparency regarding their post-complaint sales might have prevented future legal disputes concerning these transactions.
The analysis suggests that the SEC is actively pursuing Ripple’s operational practices intending to implement strict regulations, which could threaten the company’s institutional operations.
Rispoli stated that the upcoming briefing will center on Ripple’s current operations and highlight the differences from what was addressed in the MSJ (Motion for Summary Judgment). He emphasized that the risks remain significant, particularly for Ripple and not XRP.
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What’s Next for Ripple?
With the potential for the case to be appealed, Rispoli said an order from the 2nd Circuit Court of Appeals would not occur until around mid-2026, implying a potentially lengthy legal process.
The current lawsuit has negatively impacted XRP, hurting its adoption in the U.S. and hampering its growth in the 2021 bull run. Another prolonged lawsuit could further suppress XRP, preventing it from reaching the heights the community hopes for.