Latest: Court Issues Fresh Order in Ripple v. SEC Lawsuit

Judge Torres requests the parties to propose a joint briefing schedule for the upcoming penalty phase.

Judge Analisa Torres, the ruling judge of the SEC v. Ripple case, has requested the parties propose a joint briefing schedule for the remedies phase.

According to an order shared by prominent legal expert James K. Filan, the SEC and Ripple have until November 9 to propose the schedule. However, if the parties disagree, they shall jointly ask the court to schedule a briefing.

#XRPCommunity #SECGov v. #Ripple #XRP By November 9, 2023, the parties shall jointly propose a briefing schedule with regard to remedies. If the parties cannot agree on a schedule, Judge Torres will set the schedule. pic.twitter.com/OHOG0FNPV2

— James K. Filan ???? (@FilanLaw) October 24, 2023

Next Phase in SEC v. Ripple Lawsuit 

It is worth mentioning that the remedies briefing is the next stage in the SEC v. Ripple lawsuit. The phase will determine the appropriate remedies that will be leveled against Ripple Labs for violating federal securities laws via the sales of XRP to institutional clients.

Notably, the SEC alleged that Ripple sold over $770 million worth of XRP to institutional clients in the U.S. and other parts of the world.

The remedies will focus only on Ripple’s institutional sales because the court, on July 13, found that the transaction constitutes an investment contract.

Court Moots Trial Schedule

In the meantime, the court also granted the SEC’s request to moot the scheduled trial for its claim against Ripple executives.

“The April 16, 2024, final pretrial conference and the April 23, 2024 trial are adjourned sine die. The deadlines outlined in the court’s October 3, 2023 order are vacated,” Judge Torres ordered.

Notably, the latest order comes shortly after the court granted the SEC’s request to drop its pending claims against Ripple execs Brad Garlinghouse and Chris Larsen.

On December 22, 2020, the SEC alleged that the individual defendants aided and abetted Ripple in violating Section 5 of the 1933 Securities Act.

Ripple May Not Pay $770M Fine 

Since the worth of Ripple’s institutional sales of XRP is around $770M, some crypto enthusiasts speculate that the blockchain company might pay the total sum as a fine. However, top legal experts, including Attorney John Deaton, do not believe Ripple will pay up to that amount.

The lawyer representing over 75,000 XRP holders in the lawsuit said Ripple would argue that the court should exempt On-Demand Liquidity transactions and other legitimate business costs, including travel expenses and salaries.

To buttress further, Attorney Deaton recalled that in the LBRY lawsuit, the SEC demanded that the defendant pay $23 million in fines. After a lengthy litigation over eight months, the SEC asked for a $130,000 fine.

Although Ran is correct that an appeal by the SEC will happen sooner because the SEC chose to dismiss the case against @bgarlinghouse and @chrislarsensf (because the April 2024 trial will now not happen), it is incorrect to say the SEC can appeal immediately.

The penalty phase… https://t.co/kXoHL61yL3

— John E Deaton (@JohnEDeaton1) October 20, 2023

Furthermore, Fox Business journalist Eleanor Terrett recently urged the XRP community to “expect a big fight” between the parties during the penalty phase.

Citing sources familiar with the matter, Terrett noted that while Ripple may likely reduce the penalty, the SEC will still request a substantial amount for its bragging rights.

?SO, what are next steps in the @Ripple case?

Now that the @SECGov has dropped the charges against @bgarlinghouse and @chrislarsensf, expect to see some more litigation in the penalty phase between the two parties in regards to the appropriate penalty for Ripple‘s $700M+ of… https://t.co/4jJAzKtTjp

— Eleanor Terrett (@EleanorTerrett) October 19, 2023