- Pro-XRP lawyer Fred Rispoli predicts a Ripple settlement by July 31, with a penalty up to $25 million and no disgorgement.
- Judge Torres ruled Ripple’s sales to secondary platforms aren’t investment contracts, boosting XRP’s value and investor confidence.
- The SEC’s adjusted penalty demand for Ripple is $102.6 million, much higher than Ripple’s suggested cap of $10 million.
The lawsuit between Ripple Labs and the SEC in the United States is getting closer to a settlement. The dispute, which began in December 2020, has gone through various paths of litigation. However, recent developments indicate that a settlement is forthcoming.
Pro-XRP lawyer Fred Rispoli recently outlined July 31 as a possible date for a resolution. Rispoli predicts the settlement could involve a penalty of no more than $25 million for Ripple, with no disgorgement required.
He also suggested that any sales deemed illegal by the judge would be permanently enjoined, while new contracts referenced by Ripple would require further legal action if the SEC believed they violated the ruling.
Last year, Judge Torres issued a historic decision, determining that Ripple’s sales to aftermarket trading platforms do not qualify as investment contract offers. This move triggered a large increase in XRP’s value, boosting investor confidence.
Brad Garlinghouse, the CEO of Ripple, and other key executives were cleared of all allegations, and the SEC’s subsequent attempts to appeal were denied. The potential financial penalties have been a major point of discussion.
The SEC initially demanded a fine of $2 billion, which Ripple contested, arguing for a maximum penalty of $10 million. Ripple pointed to the SEC’s previous case against Terraform Labs, noting that direct fraud allegations were only present in that case, not against Ripple.
The SEC recently adjusted its stance, proposing a $102.6 million penalty, a figure significantly higher than Ripple’s suggested maximum fine. The commission argued that the ratio of penalty to gross profit in the Terraform case should be applied to Ripple’s profits, resulting in the larger penalty figure.
Despite the complex legal challenges, there is some optimism about a potential solution. As the case nears its end, the outcome may have broad implications for the crypto sector as a whole. A resolution might influence future cases and industry laws by creating a precedent for how regulatory bodies handle charges of securities violations.
The Ripple vs. SEC case is nearing its conclusion. The final resolution might pave the way for more specific regulatory standards, influencing the future of cryptocurrency regulations.
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