“Less than $25M penalty; $0 disgorgement. Judge rules all sales she deemed illegal are permanently enjoined and rules all the “new” contracts referenced by Ripple are not properly before her so SEC will have to sue again if it believes these violate her ruling.”
Rispoli expected a court verdict by July 31 but possibly on July 13.
Will the SEC File Another Ripple Lawsuit?
SEC vs. Ripple 2: Post-Complaint Activity
Pro-crypto Lawyer Rispoli predicted that Judge Torres would not consider post-complaint contracts in her ruling. He also suggested that the SEC would have to sue again if it thinks Ripple continued to breach US securities laws.
In March 2024, the SEC filed its remedies-related opening brief. The SEC argued that Ripple continued to violate securities laws after the December 2020 court filing.
In April 2024, Ripple responded with its remedies-related opposition brief. Ripple defended its post-complaint activity, stating that it sold XRP to accredited investors, exempt under US securities laws.
Ripple also stated that it limited other XRP sales to ODL (On-Demand Liquidity) sales. ODL contracts protect buyers from losses and prevent buyers from making profits. Preventing profits and losses is crucial. XRP buyers cannot have ‘an expectation of profits’ if the ODL contract prevents it. Therefore, ODL sales would fail the Howey test, meaning they would not breach US securities laws.
The SEC may decide it has a compelling case to sue Ripple again. More legal action against Ripple could adversely affect buyer demand for XRP.
In summary, the SEC vs. Ripple case remains the focal point. However, there could be more court filings after the remedies-related court verdict. Future actions may depend on the size of the penalty and if Judge Torres prohibits XRP sales to institutional investors.
Investors should remain vigilant. A court verdict could come soon. Monitor real-time data and expert commentary to adjust your trading strategies accordingly. Stay informed with our latest updates and insights to navigate the crypto market.
