According to U.Today, the ongoing legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC) is reaching a critical stage, with the crypto community eagerly awaiting the SEC's reply brief due on May 6, 2024. This filing is anticipated to play a significant role in the remedies phase of the lawsuit.
On April 22, Ripple submitted its opposition brief against the SEC's proposal to impose a fine of approximately $2 billion in the litigation. Ripple argued that the court should reject the SEC's requests for an injunction, disgorgement, and pre-judgment interest, suggesting instead a civil penalty not exceeding $10 million. The SEC, on the other hand, proposed that Ripple should pay $876 million in disgorgement, $198 million in prejudgment interest, and a $876 million civil penalty, totaling $1.95 billion.
Legal experts are closely monitoring the SEC's strategy as it prepares its reply brief. The SEC's response is expected to primarily focus on reinforcing its claims for the remedies it seeks. Bill Morgan, a lawyer and XRP enthusiast, believes that while the amount Ripple is ordered to pay is significant, the decision on the SEC's request for an injunction seems to be of greater importance. He expressed his anticipation to see the SEC's stance on Ripple’s argument against the permanent injunction.
The crypto community is closely following the outcome of the remedies phase in the Ripple lawsuit. A decision against Ripple could have negative implications, while a favorable outcome for Ripple could boost positive sentiment in the crypto market.