Once again we are back in the square and the Ripple vs. SEC case is far from over. In a recent analysis of the SEC vs. Ripple lawsuit, prominent . The sale is a security. The lawsuit is currently in the relief phase and the SEC has filed a motion to compel Ripple to produce financial statements and information regarding institutional XRP sales.
The SEC’s request for documents is still pending.
The SEC’s latest action came on Jan. 11 when it filed a formal request with U.S. Magistrate Judge Sarah Netburn of the Southern District of New York. The request specifically asks the court to mandate Ripple’s submission of financial statements and sales agreements.
Despite numerous calls and emails, Ripple has not submitted any documents following the complaint. Despite Ripple’s objections, the SEC is requesting two specific documents and one interrogation.
Analysts risk millions of dollars. What’s next?
Rector, on the other hand, emphasized in his YouTube video that Ripple’s potential billions of dollars are at risk, highlighting that the SEC claims the company has sold about $3 billion worth of XRP since the lawsuit began. The SEC’s initial charges were quite high, but legal experts expect them to decline as relief progresses. Rector estimates that if Judge Torres considers ODL-related sales to be securities, the final fine could exceed $3 billion.
After much confusion and recent SEC moves, a negative ruling is likely. So if that happens, Rector expects Ripple will file an appeal in the Second Circuit, especially if a judge rules that ODL-related XRP sales constitute an investment contract. Rector suggests that Ripple is confident in its legal guidelines and is likely to challenge such rulings.
It’s not over yet…
As Ripple prepares to respond to the SEC’s enforcement request, the lawsuit’s relief process is expected to be completed by February 12, 2024, with the SEC’s final filing scheduled for April 29, 2024. There is no official ruling date, but pro-XRP lawyer Fred Rispoli speculates that the judge will make a decision in early summer, adding to the excitement about Ripple’s legal journey.
Both parties were granted an additional one month period by the court from the date of discovery of relief. This timeline gives the SEC time to file its case in court and gives Ripple a chance to say no. The date is approaching and there is a lot of talk that an agreement could be reached soon since Ripple and the SEC have had bad blood in the past.