Ripple vs SEC lawsuit over ODL sales continues amid fresh allegations

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The ongoing legal battle between Ripple Labs and the US SEC has taken a new turn as the SEC accuses Ripple of engaging in sales practices that mirror past violations.

According to recent updates shared by attorney James K. Filan on X, the SEC has responded to Ripple’s latest filings concerning the Terraform Labs Consent Judgment, intensifying the scrutiny over Ripple’s On-Demand Liquidity (ODL) service.

Allegations of Recurrent Practices

The SEC asserts that Ripple’s current ODL sales practices are “awfully similar” to previous actions that were deemed violations. Lawyer Bill Morgan highlighted these concerns, indicating that despite prior regulatory actions, Ripple continues to engage in questionable conduct. The SEC’s claims have complicated the legal landscape for Ripple, suggesting that the company’s adherence to regulatory guidelines remains in doubt.

This ongoing scrutiny has placed Ripple’s ODL service, a core component of its business model, under a cloud of legal uncertainty. The SEC’s response to Ripple’s filings emphasizes a pattern of behavior that the regulatory body finds problematic, raising questions about Ripple’s compliance with existing regulations.

The court currently lacks comprehensive records to determine whether Ripple’s ongoing ODL sales violate existing regulations. This lack of evidence complicates the judge’s ability to make a decisive ruling on the matter. The SEC’s allegations point to a need for more detailed documentation and evidence to ascertain the legality of Ripple’s current business practices.

Pro-XRP lawyer Fred Rispoli has suggested that the final judgment on remedies could be issued by Judge Torres by the end of July or early August. However, the SEC might appeal the summary judgment made in July, which adds another layer of complexity to the case. This potential appeal underscores the unresolved nature of the legal dispute and its impact on Ripple’s operations.

Financial Penalties and Legal Proceedings

The SEC is seeking $2 billion in fines and penalties from Ripple, while Ripple contends that the penalty should not exceed $10 million. This substantial disparity in the proposed penalties highlights the contentious nature of the ongoing litigation. Despite discussions around a possible settlement, Rispoli has indicated that the chances of a settlement are currently minimal.

The legal proceedings are expected to continue, with both parties preparing for further arguments and potential appeals. The role of Judge Netburn in this context remains uncertain, as she and Judge Torres could decide whether the issue before Netburn requires a ruling or if Judge Torres can proceed with a final judgment on remedies and injunctions.

`Market Response and XRP Price Movements

The legal uncertainty surrounding the Ripple vs. SEC lawsuit has had a notable impact on the market performance of XRP.At press time, XRP was trading at $0.4785, showing a 0.13% increase in the past 24 hours, according to CoinMarketCap data.

Despite the legal challenges, the XRP trading volume has seen an 2.18% surge, reaching $1,058,597,050, with a market cap of $26,602,286,830. This indicates a level of market activity and interest, even amidst the ongoing legal uncertainties.

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