In the ongoing legal battle between the US Securities and Exchange Commission (SEC) and Ripple Labs, Inc., a new development has emerged that sets the course for future proceedings. Judge Analisa Torres, who presides over the case in the Southern District of New York, has issued an order granting the parties until November 9, 2023, to propose a briefing schedule together regarding the appropriate remedies against Ripple for its alleged section 5 violations in the institutional sales of XRP.
Pro-XRP attorney James Filan shared this update on social media, noting that if the parties fail to agree on a schedule, Judge Torres will determine the schedule. This order sets a clear direction for the next steps in this closely watched litigation.
This follows the SEC’s notification to the court of the stipulated dismissal of its claims against individual defendants, Christian Larsen and Bradley Garlinghouse. As a result, the trial scheduled for these claims will no longer be necessary.
The order issued by Judge Torres explains that the SEC has dismissed its pending claims against Larsen and Garlinghouse. The dismissal has been filed with prejudice, indicating that there is no need to reschedule the previously arranged hearings. This development effectively postpones the previously scheduled April 16, 2023, final pretrial conference and April 23, 2024 trial indefinitely.
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Legal experts have provided insights into the meaning of the phrase “sine die” used in Judge Torres’ order. Jeremy Hogan, another pro-XRP attorney, explains that “sine die” means “without day,” indicating that the hearings are canceled without plans for rescheduling. This clarification helps to understand the implications of the order in terms of the dismissed claims against Larsen and Garlinghouse.
The focus of the SEC vs. Ripple lawsuit now shifts to the remedies briefing, where the penalties against Ripple Labs will be determined. The SEC alleges that Ripple conducted XRP sales totaling over $770 million to institutional clients worldwide. It should be noted that the court previously deemed these transactions as investment contracts on July 13, thus limiting the focus to Ripple’s institutional sales.
The magnitude of Ripple’s institutional XRP sales has led some in the crypto community to speculate that the potential fine could reach $770 million. However, legal experts like John Deaton, a pro-XRP attorney representing over 75,000 XRP holders, challenge this notion. Deaton cites cases such as the LBRY lawsuit, where the initially demanded fine of $23 million was significantly reduced to $130,000 after prolonged litigation.
As the penalty phase approaches, there is anticipation for 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 seek a reduced penalty, the SEC will push for a substantial sum to make a statement.
In terms of market performance, XRP has broken out of its trading range of the past two months, currently trading at $0.5510. This breakout is marked by the 0.236 Fibonacci retracement level on the 1-day chart. A retest is currently underway, and if XRP manages a daily close above $0.55, it could unleash new bullish momentum.
It is important to note that the featured image is from Shutterstock, and the chart is from TradingView.com.
In summary, the latest order by Judge Analisa Torres regarding the SEC vs. Ripple lawsuit sets the stage for the parties to propose a briefing schedule on the appropriate penalties against Ripple. With the dismissal of claims against individual defendants, the focus now shifts to determining the penalties for Ripple’s alleged violations. As the case progresses, there is anticipation for a heated contest between the SEC and Ripple over the amount of the fine. Meanwhile, XRP has experienced a breakout in its price, and a retest is currently underway to determine the market’s next move.
