Here’s Why July May Bring a Big Decision for Ripple and XRP

Dizer Capital founder Yassin Mobarak highlights the significance of July for Ripple and XRP. 

The crypto enthusiast highlighted that two important legal rulings relating to XRP and Ripple were issued over the past two years, specifically in 2022 and 2023. 

In July 2022, Mobarak stated that Judge Sarah Netburn, one of the judges in the Ripple lawsuit, called out the SEC’s hypocrisy regarding the admissibility of William Hinman’s emails. Also, in July 2023, Judge Analisa Torres issued the highly anticipated summary judgment decision. 

Recall that the July 2023 decision gave the parties partial victory. While Ripple emerged victorious in the decisions relating to XRP’s legal status, programmatic sales, and other distributions of the coin, the court held that the company violated federal securities laws through its institutional sales.

Interestingly, the Dizer Capital founder said he was on overseas vacation when the judges issued both rulings, hinting at a humorous coincidence. 

Will SEC v. Ripple See Another Significant Ruling this July?  

Notably, he urged XRP enthusiasts to be optimistic, emphasizing that it is July again, and he is preparing for another overseas vacation by next week.  

“We are in July, and I’m going on an overseas vacation next week. You know what that means,” he remarked.  

#XRPCommunity

– In July 2022, Judge Netburn issued her important ruling regarding admissibility of Hinman emails and called out the hypocrisy of the SEC. I was on an overseas vacation at the time.

– In July 2023, Judge Torres issued her famous ruling declaring $XRP, in its…

— Yassin Mobarak (@Dizer_YM) July 1, 2024

The statement suggests that the court could issue another significant ruling this month based on the timing of other major decisions in the lawsuit and Mobarak’s vacation plans.

Parties Awaiting Final Judgment 

Meanwhile, the SEC and Ripple are currently awaiting the court’s final judgment. As reported earlier, the parties concluded the remedies brief in May.

While the SEC requested a nearly $2B fine for Ripple’s securities law violation, the company argued for a $10M penalty. Last month, Ripple filed a supplemental authority, citing the Terra settlement to support its argument for a lower penalty. 

Since the filing, the court has not provided any update. Nonetheless, top Ripple stakeholders are confident that the highly anticipated final verdict will be issued before year-end. Specifically, Ripple CEO Brad Garlinghouse speculated that Judge Torres might issue the decision before the end of summer 2024.

Possible Factor Delaying Final Judgment 

In May, prominent XRP community member Ashley Prosper identified the court’s decision on Ripple’s motion to exclude the declaration of one of SEC’s witnesses as the only factor standing in the way of the final verdict.

Recall that Ripple asked the court to exclude the declaration of Andrea Fox, a top-level SEC accountant. The company characterized Fox as an expert witness, stating that the SEC should have made her report available for deposition before the end of the remedies-related discovery. 

However, the SEC denied this claim, describing her as a summary witness who only summarized Ripple’s financial statements. 

The court is expected to decide on the matter at any time. It remains to be seen whether the court will issue this decision alongside the final judgment or schedule separate dates for both rulings.