The Ripple vs SEC Legal Battle: Exploring the Impact of the Redacted Remedies Reply
The market is currently divided due to the SEC‘s submission of a sealed remedial reply brief and exhibits in its complaint against Ripple. The redacted copies of this brief will be released today. The case becomes more interesting when both parties use strategy to protect their interests.
In a recent post, pro-XRP lawyer Bill Morgan noted the potential implications of a permanent ban on Ripple’s XRP sales. He believes the regulator’s response is more crucial than the penalty.
The Impact of Bill Morgan’s Counter Reaction on SEC.
Morgan scrutinized the SEC’s assertion regarding the financial harm suffered by institutional XRP buyers due to Ripple’s actions. He carefully examined the SEC’s broad interpretation of pecuniary harm, contrasting it with Ripple’s narrower viewpoint. He raised thought-provoking questions about the likelihood of disgorgement being ordered, hinting at potential avenues for appeal.
Read Also: Ripple vs. SEC Lawsuit: Sealed SEC Reply Brief Expected on May 8th
Can SEC Ban XRP Sales to ODL Customers?
Morgan also examined the SEC’s call for a permanent prohibition, specifically on Ripple’s ODL sales. He outlined the SEC’s claim that Ripple’s primary business is selling XRP to institutions, raising concerns about future breaches. He also discussed Ripple’s attempt to restrict the injunction and the SEC’s argument.
Not All in Favor of Ripple! – Here’s What You Need to Know
He disagreed with Judge Torres’ ruling on ODL sales being classified as investment contracts. At the same time, he criticized Ripple’s argument that they lacked clarity in differentiating these sales from other institutional and programmatic sales during the summary judgment phase. Ripple now faces the challenge of addressing this issue on appeal, as he expects the court will likely grant a permanent injunction, extending its scope to cover ODL sales.
Attorney Jeremy Hogan announced the completion of the Ripple vs. SEC briefs, expressing his view that the SEC’s final response lacked impact. Hogan noted that the SEC did not address ODL sales, merely acknowledged Ripple’s attempt to re-litigate the issue. Furthermore, he mentioned that the SEC did not introduce any new information regarding damages. With the briefs finalized, the anticipation now shifts to the judge’s decision.
The Ripple v. SEC briefs are FINISHED!
And I think the SEC went out with a whimper here.
It didn't even try to attack ODL sales, just noting that Ripple was trying to re-litigate the issue (which it is).
And it brought nothing new on damages.
Just waiting for The Judge now! https://t.co/r8nxNMTzqj pic.twitter.com/Futa93lXUb
— Jeremy Hogan (@attorneyjeremy1) May 8, 2024
Read Also: XRP Trading Volume Shatters Records, Surges by 240% in a Single Day
XRP Price Impact
The SEC lawsuit has had a negative impact on XRP’s price, but there is hope for a turnaround. Although it is currently trading around $0.53, positive news from the Ripple vs. SEC case could push it past $0.55. Derivatives traders are also showing interest, with XRP futures OI increasing by almost 4% in 24 hours, indicating a bullish trend in the futures market.
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Kayode Michael is a seasoned cryptocurrency analyst, successful trader, and skilled writer with a strong command of cryptocurrency analysis and price action. He leverages his technical analysis skills to provide valuable insights into emerging market trends and potential opportunities for investors to make informed decisions.
