In the ongoing legal dispute between Ripple Labs and the Securities and Exchange Commission (SEC), new information has surfaced. James K. Filan posted on X (formerly known as Twitter) that the SEC has answered Ripple’s latest filings concerning the Terraform Labs Consent Judgement.
SEC vs Ripple: Uncertainty Over ODL Sales Persists
According to XRP attorney Bill Morgan, Ripple is accused by the SEC of engaging in actions that are “awfully similar” to past transgressions. The legal environment surrounding Ripple’s On-Demand Liquidity (ODL) service is becoming more difficult due to this continuing issue.
According to the SEC, Ripple’s current ODL sales tactics resemble those that were previously found to be illegal. The SEC has issued warnings, but the court needs more complete data to ascertain if these sales violate current laws. This intricacy adds another level of complication to the complex litigation between the SEC and XRP. The prospect that the SEC would file an appeal of the July summary judgment further complicates the legal debate.
The ultimate ruling in the SEC v. Ripple Labs case is expected to be rendered in July, according to legal experts. The decision by Judge Torres that XRP programmatic sales are not security contracts may also be appealed by the SEC. Both parties are on edge due to the continuous uncertainty and the possibility of additional court wrangling.
The price of XRP drops, In the midst of legal uncertainty
pro-XRP attorney Fred Rispoli predicted that Judge Torres would rule on remedies by the end of July or the beginning of August. On July 13, he surmises, Judge Torres might render a lyrical decision. The SEC is pushing for fines and penalties totalling $2 billion, but Ripple thinks the maximum punishment ought to be $10 million. Although a settlement is feasible, Rispoli pointed out that the chances are currently 0%. Judges in the decision could still have to address arguments that the SEC and Ripple could not yet resolve.
The XRP community believes the litigation may go to the appeals court despite these changes. In this situation, Judge Netburn’s function still needs to be clarified. Rispoli said Netburn and Torres may talk and decide there was no need for a ruling on the matter before Netburn. Judge Torres might rule on remedies and injunctions without addressing the expert witness issue. But this would only happen if Ripple wins the case.
The persistent legal ambiguity has influenced XRP’s market performance. At $0.4759, the price of XRP is currently trading with a pessimistic attitude, having decreased by 0.43%. XRP has witnessed highs of $0.4808 and lows of $0.4647 in the last twenty-four hours.
