XRP investors may have to wait a long time for a full settlement of the ongoing lawsuit between Ripple and the SEC.
The longstanding legal battle between the United States Securities and Exchange Commission (SEC) recently entered a crucial stage.
A Magistrate Judge approved a motion by the SEC mandating Ripple to provide certain financial documents and contracts related to institutional sales of XRP.
Ripple must comply with the request as it forms part of the remedies stage in the lawsuit. However, the legal community expects the company to appeal to the Second Circuit Court in the aftermath of a remedies filing, a situation that would see the court battle linger for even longer.
SEC and Ripple Disagree on Retail and Institutional XRP Sales
In a July 2023 ruling, U.S. District Court Judge Analisa Torres concluded that sales of XRP on exchanges did not constitute securities transactions.
However, the court also ruled that institutional sales of XRP were illegal securities transactions, a fact now established as part of the ongoing remedies process.
Nonetheless, both Ripple and the SEC want comprehensive victories for various reasons. The SEC, on its part, may not want to concede that primary sales of XRP on exchanges are not securities transactions.
The regulatory body uses this point as a fundamental basis for its other outstanding lawsuits against Coinbase and Binance. Hence, conceding to Ripple lowers its chances of securing victory in those cases.
In view of the following, the XRP community might be in for a long wait until a full settlement is reached. The U.S. Court of Appeals handles appeals from various federal courts, especially those that involve unique legal applications.