Ripple vs. SEC Lawsuit Update: Potential Supreme Court Showdown and $2 Billion Penalty Battle
The post Ripple vs. SEC Lawsuit Update: Potential Supreme Court Showdown and $2 Billion Penalty Battle appeared first on Coinpedia Fintech News
The Ripple vs. SEC lawsuit might go to the Supreme Court. In fact, Ladan Stewart, the former SEC litigator has suggested this possibility. Hence, Ripple is getting ready for a major legal battle on April 22nd.
The key debate is whether crypto tokens like XRP are securities. The SEC plans to appeal the ruling of 2023 in Ripple’s favour. Now, it has made a crucial demand against Ripple Labs as a penalty.
Ripple’s Legal Response to SEC and SEC Panellists’ Request
Ripple Labs is getting prepared to file its opposition against the SEC’s proposed penalties. The SEC is seeking a total of nearly $2 billion from Ripple for alleged violations of the Securities Act of 1933. It specifically focuses on unregistered XRP offerings.
The SEC’s proposed penalty includes disgorgement, prejudgment interest, and civil penalties, totaling almost $2 billion. Ripple executives have expressed disbelief at these penalties, especially without allegations of fraud or discussion on viable contracts. Previous settlement talks in March have failed to resolve disputes.
Ripple’s Defense Strategy
On April 22, Ripple will be submitting a redacted version of its opposition brief to the SEC. They will include documents and evidence, supporting their cause. Some parts will stay private based on SEC rules, but a public version will come later. Ripple’s defence is likely to challenge the SEC’s penalty request. It would possibly refer to a court decision from the Aron Govil case and Coinbase’s clarity on secondary market sales
Currently, Attorney John E. Deaton wants to help 4,700 Coinbase customers in a case against the SEC. Coinbase is challenging a key rule about digital assets. If Coinbase wins, it could help Ripple in its own case against the SEC.
Read more: Ripple’s John Deaton Rallies Thousands of Coinbase Customers in Battle Against SEC
XRP’s Price and Legal Uncertainties Amid SEC vs XRP Case
Ripple’s legal battle with the SEC continues to impact XRP’s market. Bill Morgan has also highlighted the lawsuit’s damage and Ripple’s silence on XRPL. In spite of this, XRP shows resilience below $0.50. In addition, Brad Garlinghouse has emphasized Ripple’s strategy to merge traditional finance with crypto amidst US regulatory challenges.
XRP price rose to $0.5030 on Friday. It was influenced by the tensions in the Middle East, and the SEC vs Ripple lawsuit. Price trends show XRP could go up to $0.5739 or drop to $0.45.
XRP’s price signs are unclear at the moment, but might change soon. People are unsure because of legal issues and are waiting to see what Ripple does next.
Read more: Is the Ripple vs SEC Lawsuit Holding XRP Price Back?
