In its current legal battle with the U.S. Securities and Exchange Commission (SEC), Ripple is about to make a major move that will change the course of the case within the next 24 hours.
Ripple’s response to the SEC’s remedies briefing is due on April 22. This will be a big turning point in the lawsuit that has everyone in the cryptocurrency world talking.
At the heart of the latest development is the SEC’s remedies report, which outlines possible steps to take to fix the problems that Ripple Labs is said to have caused. These solutions, which include asking for profits from XRP sales to be returned and imposing civil fines, are now being argued against by Ripple as the company prepares to take its case to court. The SEC wants to fine about $2 billion because they say that Ripple offered XRP through institutional sales without being listed. XRP strongly denies these claims.
Ripple’s Legal Strategy Unveiled
As Ripple gets ready to respond, there is a lot of talk about what it will say and how it will act strategically. Analysts in the market expect XRP to strongly disagree with the SEC’s suggested solutions. The company may use recent court victories and changes in regulations to support its case.
Stuart Alderoty, Ripple’s Chief Legal Officer, pointed out a recent win in the SEC v. Govil case, pointing out that buyers may not have lost any funds, which could weaken the SEC’s claims of disgorgement. XRP’s claim could argue against the SEC’s requests for fines and stress that buyers were not financially hurt, which could weaken the SEC’s case for disgorgement.
XRP plans to release a version of its opposition brief with some parts blacked out on April 22. They will also include supporting statements and exhibits, as long as they don’t include anything the SEC has marked as private. But if the opposition brief has SEC-designated secret information in it, it could be sealed on April 22. If this happens, Ripple will share a version of the opposition brief that has been edited on April 24. This version will have interim edits. After that, on May 6, the SEC is set to send its reply brief under seal. This will be the next step in this closely watched court case.
