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In the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), Ripple is gearing up to file a crucial reply to the SEC's remedies briefing within the next 24 hours, specifically on April 22. This step marks a significant moment in the ongoing lawsuit that has captured the attention of the cryptocurrency world.
The latest development in the case revolves around the SEC's remedies briefing, in which the regulatory agency outlined its proposed remedies.
The proposed remedies seek the disgorgement of profits derived from XRP sales and civil penalties. Ripple now has the opportunity to respond to these proposed remedies and present its arguments before the court.
The SEC has asked for roughly $2 billion in fines from Ripple, alleging violations of securities law through unregistered XRP offerings in institutional sales.
As Ripple prepares to file its reply, speculation abounds regarding the content and strategy of its response. Market observers anticipate that Ripple will vehemently contest the SEC's proposed remedies.
Moreover, Ripple may leverage recent legal victories and regulatory developments to bolster its case.
Tomiwabold OlajideAs reported, Ripple Chief Legal Officer Stuart Alderoty underlined the significance of the most recent win in the SEC v. Govil case, which held that if a buyer suffers no financial loss, the SEC is not entitled to disgorgement from the seller.
Ripple's arguments might likely challenge the SEC's request for penalties and highlight the lack of financial loss to buyers, potentially undermining the SEC's claim for disgorgement.
On April 22, Ripple is expected to file a public redacted version of the opposition brief, along with supporting declarations and exhibits, if the materials do not cite or include any materials designated by the SEC as confidential.
If, however, the opposition brief contains materials designated by the SEC as confidential, then the brief and materials might be filed under seal on April 22. On April 24, Ripple will file a public redacted version of the opposition brief in this scenario, making only provisional redactions.
On May 6, the SEC is expected to file its reply brief under seal.
Yuri Molchan
Vladislav Sopov
Dan Burgin