The SEC vs. Ripple lawsuit is entering a crucial phase, as Judge Torres is expected to deliver her final ruling in the third quarter of 2024. This decision will come after resolving the dispute over sealing Ripple’s financial details and XRP sales to institutional investors, which has been a contentious issue between the SEC and Ripple Labs. Legal experts believe that the judgment may come earlier than anticipated, and all parties involved, including third parties, are eagerly awaiting the outcome.
The legal status of XRP in the United States is also under scrutiny, as the U.S. House of Representatives has recently voted on the Financial Innovation and Technology for the 21st Century Act (FIT21). This bill aims to establish a regulatory framework for digital asset trading and issuance, defining the roles of the CFTC and SEC in regulating the crypto industry. If enacted, this law will have an impact on ongoing lawsuits against major players like Coinbase, Binance, and Ripple.
This legislative move has raised concerns about the decentralization of XRP. Lawyer Bill Morgan has provided clarification on this matter.
Regarding the SEC’s opposition to Ripple’s motion to seal evidence, the SEC argues that redacting certain information would hinder the public’s understanding of the penalties involved and the court’s decision-making process. This includes details about Ripple’s assets, sales, revenues, expenses, and discounts to institutional investors. The SEC is seeking $2 billion in fines, while Ripple believes it should only pay civil penalties of no more than $10 million. Typically, the initial amounts requested by parties are not accepted by the courts, suggesting that the final amount may be significantly lower.
Bill Morgan predicts that Ripple will mostly lose the motion to seal. He also noted that the SEC clarified that none of the sales to institutions with discounts were ODL contracts. However, the SEC still seeks a permanent injunction to halt ODL sales.
Throughout the legal proceedings, the price of XRP has remained stable. Market analysts attribute this stability to the uncertainty surrounding the lawsuit’s outcome. Investors and traders are closely monitoring the developments, particularly Judge Torres’ final judgment and the potential impact of the FIT21 bill.
