According to U.Today, Ripple Labs is preparing to file a crucial reply to the U.S. Securities and Exchange Commission's (SEC) remedies briefing in their ongoing legal dispute. This significant step, expected to occur on April 22, is part of a lawsuit that has garnered considerable attention in the cryptocurrency sector. The SEC's remedies briefing outlined proposed remedies, including the disgorgement of profits from XRP sales and civil penalties. Ripple now has the opportunity to respond and present its arguments before the court.
The SEC is seeking approximately $2 billion in fines from Ripple, alleging that the company violated securities law through unregistered XRP offerings in institutional sales. As Ripple readies its reply, there is widespread speculation about the content and strategy of its response. It is anticipated that Ripple will strongly contest the SEC's proposed remedies and may use recent legal victories and regulatory developments to strengthen its case.
Ripple Chief Legal Officer Stuart Alderoty highlighted the importance of a recent win in the SEC v. Govil case. This case ruled that if a buyer does not suffer a financial loss, the SEC is not entitled to disgorgement from the seller. Ripple's arguments are likely to challenge the SEC's request for penalties and emphasize the lack of financial loss to buyers, potentially undermining the SEC's claim for disgorgement.
On April 22, Ripple is expected to file a public redacted version of the opposition brief, along with supporting declarations and exhibits, if the materials do not cite or include any materials designated by the SEC as confidential. If the opposition brief contains confidential materials, then the brief and materials may be filed under seal on April 22. In this case, Ripple will file a public redacted version of the opposition brief on April 24, making only provisional redactions. The SEC is expected to file its reply brief under seal on May 6.