In the ongoing legal case between the US Securities and Exchange Commission (SEC) and Ripple Labs, Inc., the latest document filed in court brings a new direction to the procedural conduct of the case. Judge Analisa Torres, presiding over the case in the Southern District of New York, has recently issued an order granting the parties until November 9, 2023, to jointly propose a briefing schedule concerning the appropriate remedies against Ripple concerning its alleged section 5 violations in institutional sales of XRP.
Pro-XRP attorney James Filan shared the update on social media, stating “SEC vs. Ripple: By November 9, 2023, the parties shall jointly propose a briefing schedule with regard to remedies. If the parties cannot agree on a schedule, Judge Torres will set the schedule.” Filan’s post indicates the clear direction set forth by the court for the next procedural steps in this closely monitored litigation.
Ripple Vs. SEC: The Next Phase
This comes after the SEC notified the Court of the stipulated dismissal of its claims against individual defendants, Christian Larsen and Bradley Garlinghouse. This decision effectively removes the need for the trial scheduled for this claim.
A pertinent section of Judge Torres’ order sheds light on the dismissal of previous claims against individual defendants, Christian Larsen and Bradley Garlinghouse. The stipulated dismissal has been filed with prejudice, negating the necessity for a scheduled trial on these particular claims.
The order by Judge Torres articulates, “Plaintiff Securities and Exchange Commission respectfully notifies the Court of the stipulated dismissal of the SEC’s pending claims against Defendants Christian Larsen and Bradley Garlinghouse (“Individual Defendants”).” Consequently, the previously arranged schedules, including the April 16, 2023, final pretrial conference and the April 23, 2024 trial, have been adjourned “sine die.”
Providing his interpretation, another pro-XRP attorney, Jeremy Hogan, commented on the phrase “sine die” used in Judge Torres’ order. Hogan elucidates, “‘sine die’ at the end of the Order means ‘without day’ meaning that the hearings are canceled without any plan to reschedule them. Example: After he became jerky on Tinder, I canceled our date sine die.”
As the SEC vs. Ripple lawsuit progresses, the focus now shifts to the remedies briefing, where the penalties against Ripple Labs will be determined. This centers on allegations by the SEC that Ripple executed sales exceeding $770 million of XRP to institutional clients globally. It should be noted that the emphasis will solely be on Ripple’s institutional sales since the court deemed these transactions as investment contracts on July 13.
Given the magnitude of Ripple’s institutional XRP sales, some in the crypto community speculate the potential fine might reach the $770 million mark. However, leading legal minds, such as pro-XRP attorney John Deaton, representing over 75,000 XRP holders, challenge this notion. Deaton points to cases like the LBRY lawsuit, where, after prolonged litigation, the initially demanded fine of $23 million was significantly reduced to $130,000.
As the penalty phase draws near, many anticipate a fierce contest between the SEC and Ripple over the amount of the fine. Journalist Eleanor Terrett of Fox Business predicts, citing sources, that while Ripple will push for a reduced penalty, the SEC, seeking to make a statement, will advocate for a substantial sum.
XRP Price Breaks Out
At press time, XRP traded at $0.5510. XRP has thus broken out of the trading range of the last more than two months, marked by the 0.236 Fibonacci retracement level on the 1-day chart.
Currently, a retest seems to be underway. If XRP manages a daily close above $0.55, it could unleash new bullish momentum.
Featured image from Shutterstock, chart from TradingView.com
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