The United States Securities and Exchange Commission (SEC) has filed its final remedies-related reply brief and supporting exhibits in the Ripple lawsuit.
Popular defense lawyer James Filan shared the development on X yesterday, stating that the motions are still sealed.
According to Filan, the SEC’s filing will remain sealed until May 8, when a redacted version will be filed publicly.
Notably, the SEC’s and Ripple’s lawyers will meet and confer today, May 7, to identify necessary redactions before the documents are unsealed.
Possible Arguments in SEC’s Reply Brief
Although the SEC’s reply remains sealed at press time, legal commentators expect the documents to counter Ripple’s arguments in opposition to the regulator’s opening remedies brief.
Recall that the SEC asked the court to impose a nearly $2 billion fine against Ripple for violating federal securities laws via its institutional sales of XRP. This came up after Judge Analisa Torres’ ruled last July that the San Francisco-based firm contravened securities laws by selling XRP to institutions in the past.
In its opening remedies brief, the SEC also contended that an injunction be leveled against Ripple to prevent it from future violations. As reported earlier, Ripple opposed the SEC’s demands, stating that both an injunction and disgorgement are unwarranted.
The crypto payments company argued that the SEC failed to illustrate the necessity for an injunction or disgorgement. Furthermore, Ripple noted that the civil penalty should not exceed $10 million instead of the $876 million the SEC seeks.
Notably, the SEC is expected to counter Ripple’s arguments, explaining why the court should grant its request over Ripple’s.
Experts Project Timeline for Final Resolution
Meanwhile, the SEC’s reply brief has elicited reactions among XRP enthusiasts, with industry commentators projecting the potential timeline for a final resolution of the lawsuit.
Outspoken XRP community figure Ashley Prosper projected that Judge Analisa Torres would issue her final verdict between July and September 2024. Interestingly, he pointed out that the parties could reach an agreement and settle before the final verdict is issued.
Prosper expressed determination to endure through the process, irrespective of the final resolution’s path.
#XRP #XRPCommunity
And now we wait for Judge Torres to rule, somewhere between July – September.
Or maybe the parties settle before that. 😉 Either way, we shall persevere. https://t.co/n8HUFivrGR— Ashley PROSPER (@AshleyPROSPER1) May 6, 2024
It is worth mentioning that the timeline is mere speculation, and there is no guarantee that the judge will issue the final verdict between July and September 2024.
Will SEC Appeal?
The prediction comes a few days after Prosper speculated that he expects one of the parties to appeal the ruling.
If this happens, the SEC v. Ripple case could linger beyond 2025. The SEC had already attempted to appeal the summary judgment decision, which gave Ripple a partial victory.
However, Judge Torres thwarted this move, ordering the regulatory agency to wait until all pending issues were resolved. Should the court issue a final verdict within Prosper’s timeline, the SEC could continue its bid to overturn Ripple’s victory in the Second Circuit.
The regulator could also accept the final verdict and not appeal if the ruling goes in its favor.
