New Developments in SEC’s Case Against Ripple
There has been an update in the SEC case against cryptocurrency company Ripple, and this could bring an end to the case in a few months.
Judge Sarah Netburn has ruled that Ripple must respond to motions set by the SEC by the start of May.
The lawsuit might wrap up in June or July, if everything proceeds smoothly from here, and Ripple might have to pay out $100 million according to current estimates.
The trial phase started for the case, which means the SEC lawsuit against Ripple is likely to finish in the next few months. The two parties may come to an agreement or Ripple may simply pay the required penalties. The longer the case drags on, though, the more lawyer fees Ripple accumulates, and the more they shine a light on the illegal practices that have plagued some of the cryptocurrency industry.
The new scheduling order from Judge Netburn requires all parties to set remedies and determine final judgment. The regulator- the SEC- is required by this order to file its response no later than April 29th. Ripple has been given three business days to form a reply.
How Is the Case Likely to Go?
Many cryptocurrency industry analysts are pointing out that Judge Netburn has just recently been nominated as New York’s District Judge for the Southern District and that she has been positive toward XRP in the past. The hope within the industry is that the judge will have some leniency with Ripple and not take the hard line with cryptocurrency like many other judges have in the past.
A statement from the judge in 2021 said that she understood that XRP has no value as currency but does have functional value, which sets it apart from ether and bitcoin.
One estimate places the settlement amount at $100 million and predicts that the lengthy lawsuit will be done by the summer. That will only happen if Ripple gets a disgorgement and does not have to pay all $2 billion in fees that the SEC has requested of Ripple.
We will keep you up to date on the progress of this case as news develops.
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