The courtroom was abuzz last week as the highly-anticipated legal showdown between Ripple and the SEC finally began. As the two sides prepared to battle it out, all eyes were on attorney James K. Filan, who revealed a new schedule set by Magistrate Judge Sarah Netburn.
The stakes were high as they targeted the motion for remedies and final judgment, with a looming deadline of April 29 for the SEC to respond. And with Ripple given just three business days to reply, the tension in the room was palpable.
A Crucial Week For Ripple And SEC
The courtroom drama continues as Magistrate Judge Sarah Netburn has laid out a timeline for the highly-anticipated lawsuit between Ripple Labs and the Securities and Exchange Commission (SEC). With both sides vying for victory, the stakes have never been higher.
Judge Netburn’s schedule is crucial in Ripple’s efforts to dismiss the SEC’s latest expert evidence, which aims to justify harsh penalties and a final ruling against the cryptocurrency company. But with the judge granting the SEC an extension until April 29, 2024, to submit their rebuttal, Ripple’s fate hangs in the balance.
The highly respected Judge Netburn has just been appointed as District Judge in the Southern District of New York. But don’t worry, she’s not leaving the Ripple vs. SEC case anytime soon. In fact, she will continue to preside over the case, where her fair and unbiased rulings have earned her praise from the entire crypto community.
“My understanding about XRP is that not only does it have a currency value, but it has a utility, and that utility distinguishes it from bitcoin and ether,” the judge said in 2021 (according to attorney Jeremy Hogan).
XRP stands its ground against the SEC’s lofty demands, refusing to back down in the face of potential civil penalties. The innovative blockchain payments firm boldly offers a counterproposal, capping the maximum penalty at a mere $10 million. With unwavering confidence, Ripple dismisses the SEC’s accusations as unfounded and lacking in substantial proof.
Here’s The Expected Outcome
Meet Bill Morgan, the passionate and unwavering representative of Ripple. For the past three years, he has fiercely defended the company’s On-Demand Liquidity (ODL) sales, vehemently declaring them to be anything but investment contracts. With unwavering conviction, Morgan insists that ODL transactions stand apart from traditional investments.
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In a stunning turn of events, Ripple has fired back at the SEC, challenging their accusations of potential misconduct and lack of financial harm in their XRP sales. Drawing on the precedent set by the Govil case, Ripple confidently refutes the SEC’s demand for disgorgement, calling into question the agency’s evidence.
“I believe the Judge will order no disgorgement but will throw the SEC a bone by imposing a $100 million penalty on Ripple.”
In a dramatic showdown, the SEC has slapped Ripple with a jaw-dropping $2 billion fine for allegedly breaking the rules in their XRP sales. But Ripple is not backing down without a fight.
Their fearless chief legal officer, Stuart Alderoty, has fired back with a compelling argument that XRP is not a security and should not be subject to the SEC’s strict regulations. In a bold move, Alderoty has presented a convincing case for why the fine should be reduced to a mere $10 million.