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Ripple has hinted at the next steps in its ongoing lawsuit with the United States Securities and Exchange Commission (SEC). In its most recent Q1 report, Ripple expresses anticipation for a pivotal moment in the case: the judge's decision on the final remedies, which is expected in the coming months.
Ripple's leadership remains confident in the strength of their legal arguments and that the judge will approach the remedies phase fairly.
"In terms of next steps, both parties will wait for the Judge to make a determination on the final remedies - likely in the coming months. Ripple remains confident that the Judge will approach the remedies phase fairly," the company stated in its Q1 2024 XRP Markets Report.
The judge's decision on the final remedies will have far-reaching consequences for Ripple and the whole crypto market. If the court rules in favor of Ripple, it may set a precedent for digital assets in the United States. In contrast, a finding in favor of the SEC might result in more regulatory scrutiny for other cryptocurrencies, potentially stifling innovation in the industry.
Throwback to timelines in remedies phase
The SEC filed a request for remedies against Ripple for institutional XRP sales with the court on March 22. The SEC has requested roughly $2 billion from the court, which includes $900 million in disgorgement, $200 million in prejudgment interest on the disgorgement request and $900 million in penalties. The SEC also requested an injunction.
Ripple submitted its response to the SEC's request on April 22, stating that the law does not allow for disgorgement if the SEC has not demonstrated that anyone was harmed.
Tomiwabold OlajideRipple argued that a penalty of no more than $10 million would be appropriate in a case involving no fraud or recklessness allegations. The SEC replied to Ripple’s brief on May 6.
While the specific timing for the judge's decision is unknown, Ripple's recent statements suggest that they are preparing for a resolution within the next few months.
This period of anticipation is marked by cautious optimism, as stakeholders across the crypto industry await the outcome that could shape the future of digital asset regulation.
Alex Dovbnya
Arman Shirinyan
Dan Burgin
Vladislav Sopov