In the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC), the anticipation for a ruling has reached fever pitch. It has been 931 days since the SEC filed its lawsuit against Ripple Labs and its executives, Brad Garlinghouse and Chris Larsen. The last publicly visible action in the litigation occurred on June 13 when the Hinman documents were released. Since then, there has been silence.
Attorney John E Deaton, who is representing 75,000 XRP holders as amicus curiae, recently took to Twitter to shed light on the prolonged timeline and dispel speculations surrounding the case. His enlightening Twitter thread reveals an interesting aspect of the Ripple vs. SEC case: the surprisingly long duration it has taken for a ruling to be made.
Deaton points out that the reply briefs for summary judgment were filed in December 2022, which means Judge Torres’ decision has taken an astounding seven months of deliberation. However, Deaton emphasizes the importance of considering other cases before Judge Torres that have encountered similar delays. For example, in the Thor Equities case, also before Judge Torres, the Reply Briefs were filed in December, and she hasn’t ruled yet. This indicates that the Ripple lawsuit is not an isolated incident.
To provide further context, Deaton draws attention to the N.Y. District Carpenter’s fund case, where Judge Torres’ summary judgment ruling took over eight long months from the filing of the reply briefs. He also cites the Quiller Inc. vs. U.S.A. case, which took a whopping seven months for Judge Torres’ decision. Additionally, there are several other cases, such as the Fitzgerald case, which took six months for Judge Torres to render a ruling.
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While the extended waiting period has sparked frustration and speculation within the crypto community, Deaton urges caution before jumping to conspiracy theories. He assures the XRP holders that there is a larger picture at play and emphasizes that Judge Torres is well aware of the weight and significance of her decision.
The magnitude of this case, combined with its potential impact on the crypto landscape, necessitates careful consideration and thorough examination. It’s important to remember that legal proceedings can be intricate, especially when the stakes are high and the ramifications have far-reaching consequences. The Ripple vs. SEC case is no exception.
In a recent Twitter response, Deaton provided further insights into the Ripple vs. SEC case, shedding light on the status of Ripple’s XRP escrow accounts and the potential penalties the company may face. Contrary to suggestions of permanently locking Ripple’s escrow, Deaton clarified that the SEC’s primary objective is to secure a significant financial penalty of $1.3 billion and a permanent injunction.
The attorney also pointed out the possibility of a penalty phase if Ripple loses, which could involve fines, disgorgement of profits, and an injunction against future violations. However, Deaton believes that Ripple’s escrow accounts are likely to remain intact unless a settlement is reached after Judge Torres’ ruling.
As the legal battle continues, the price of XRP remains at $0.4770 at the time of writing, with the crypto community eagerly awaiting a resolution.
Overall, the Ripple vs. SEC case has captured the attention of the crypto community due to its potential impact on the industry. While the wait for a ruling has been long, it’s crucial to recognize the complexities involved and the significance of Judge Torres’ decision. The outcome of this case will undoubtedly shape the future of Ripple and have broader implications for the regulatory landscape of cryptocurrencies.
