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As the legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) heats up, the crypto community awaits the SEC's reply brief, which is due today, May 6, 2024. This filing is expected to be important in the lawsuit's remedies phase.
On April 22, Ripple filed its opposition brief with the U.S. Securities and Exchange Commission's (SEC) request to pursue a roughly $2 billion fine in the litigation.
"The Court should deny the SEC’s requests for an injunction, for disgorgement, and for pre-judgment interest, and should impose a civil penalty of no more than $10 million," Ripple stated in the filing.
The SEC wanted the court to order Ripple to pay $876 million in disgorgement, $198 million in prejudgment interest and a $876 million civil penalty, for a total of $1.95 billion.
Tomiwabold OlajideLegal analysts are closely watching the SEC's approach as it prepares its reply brief; the SEC's response will most likely focus on strengthening its claims for the remedies it seeks.
According to Bill Morgan, a lawyer and XRP enthusiast, while the amount Ripple is ordered to pay is important, the decision on the SEC's request for an injunction appears to be more important.
"I am really looking forward to seeing what the SEC says in its Reply Brief about Ripple’s argument that the permanent injunction should not be granted or, if granted, should be restricted. Is the SEC really trying to permanently stop Ripple’s sales to ODL customers," Morgan wrote.
"The decision on the injunction is more important in my view than how much Ripple is ordered to pay," Morgan added.
The crypto community watches closely the outcome of the remedies phase in the Ripple lawsuit. A decision against Ripple may have negative implications, while a favorable outcome for Ripple would bolster positive sentiment on the crypto market.
Godfrey Benjamin
Dan Burgin
Alex Dovbnya
Vladislav Sopov