The article "Update on the Ripple v. SEC Lawsuit: Possible Supreme Court Battle and $2 Billion Penalty Battle" originally appeared on Coinpedia Fintech News.
The Supreme Court may hear the Ripple v. SEC case. Ladan Stewart, a former SEC litigator, has actually raised the possibility of this. As a result, Ripple is preparing for a significant court battle on April 22.
Whether cryptocurrency tokens like XRP are securities is the main topic of discussion. The 2023 decision that favored Ripple will be appealed by the SEC. As a punishment, it has now made a significant demand on Ripple Labs.
Ripple's Legal Reaction to the Request of the SEC and SEC Panelists
Ripple Labs is getting ready to submit a protest to the SEC's proposed fines. In total, the SEC is suing Ripple for almost $2 billion in order to hold the company accountable for alleged 1933 Securities Act violations. It focuses on unregistered XRP offerings exclusively.
Disgorgement, prejudgment interest, and civil penalties totaling nearly $2 billion are all part of the SEC's proposed penalty. Executives at Ripple have expressed shock at these fines, particularly in the absence of any talk of feasible contracts or accusations of fraud. March settlement negotiations in the past have not succeeded in settling conflicts.
Ripple's Approach to Defense
Ripple plans to send a redacted copy of its opposition brief to the SEC on April 22. They will provide documentation and proof to back up their claims. A public version will be released later, but some parts will remain confidential due to SEC regulations. It is probable that Ripple's defense will contest the SEC's request for a penalty. It might allude to a ruling in the Aron Govil case and Coinbase's transparency regarding sales on the secondary market.
Right now, 4,700 Coinbase users are being represented by attorney John E. Deaton in a lawsuit against the SEC. One important rule regarding digital assets is being contested by Coinbase. Should Coinbase prevail, it might support Ripple in its legal battle with the SEC.
See also: John Deaton of Ripple Leads Thousands of Coinbase Users in the Battle Against SEC.
The Cost of XRP and the Legal Uncertainties in the SEC v. XRP Case
The SEC lawsuit against Ripple is still having an effect on the market for XRP. Also, Bill Morgan has emphasized the harm caused by the lawsuit and Ripple's lack of comment on XRPL. XRP exhibits resilience below $0.50 despite this. Furthermore, in the face of US regulatory challenges, Brad Garlinghouse has highlighted Ripple's strategy to combine traditional finance with cryptocurrency.
On Friday, XRP hit $0.5030 in price. The SEC v. Ripple lawsuit and the unrest in the Middle East had an impact on it. According to price trends, XRP may rise to $0.5739 or fall to $0.45.
The price indicators for XRP are currently unclear, but they could soon change. Due to legal concerns, people are unsure and waiting to see what Ripple will do next.