In the latest XRP lawsuit between Ripple and the US Securities and Exchange Commission (SEC), the agency filed a response summary of its remedies under seal, signaling significant progress in the remedies phase of the case. This phase focuses on identifying potential penalties the fintech company could face if the SEC is successful in substantiating its allegations that Ripple conducted unauthorized securities transactions involving its cryptocurrency, XRP.
ripple vs. SEC: Detailed schedule and upcoming events
james k. Phelan, a former defense attorney who is closely following the case, Updated XRP Community via Other filings related to sealing.
This filing is a crucial procedural step in the ongoing litigation, beginning a series of legal maneuvers centered around confidentiality and disclosure of sensitive material. Following yesterday's sealed filing, Ripple and the SEC will meet today, May 7, to discuss and determine necessary revisions to the response summary and related documents, involving both parties and any third parties. This session aims to determine what information remains hidden and what will be made available to the public.
Tomorrow, on May 8, the SEC is scheduled to release a redacted public version of the response summary as well as any supporting documents not designated as confidential or top secret under the current protective order. This release will include only those interim revisions requested during the May 7 meeting and consultation.
Further sealing motions are scheduled for May 13, when all interested parties and third parties will submit comprehensive letter requests to seal all treatment-related briefing materials. This includes summaries, announcements and supporting exhibits, followed by the submission of suggested revisions to these materials.
On May 20, objections to the sealing proposals submitted on May 13 are scheduled to be filed. The process stipulates that parties must also submit redacted public copies of all documents within 14 days after court decisions on universal sealing requests.
Financial bets and defense of Ripple
The risks are significantly high, with the SEC seeking fines and penalties totaling nearly $2 billion. Ripple's counterproposal calls for a maximum penalty of just $10 million. The fintech company is arguing against the SEC's proposed injunction, asserting that it has made significant changes to avoid future violations.
Ripple's opposition to the SEC's demand for a debunking is based on the claim that the regulator has not proven that Ripple's activities caused financial losses to institutional investors. Regarding civil penalties, Ripple is calling for a significant reduction, arguing that the SEC's demands are disproportionate compared to penalties imposed in similar cases.
Currently, a crucial battle is raging over the testimony of expert witness Andrea Fox. Ripple disputes the SEC's characterization of Fox's expert ad. Ripple's objection suggests that the SEC's classification of the certificate is flawed.
Jeremy Hogan, a legal expert from the XRP community, recently commented on the matter via X, saying: “I think the SEC will win this proposal.” He noted that based on the results of the previous case, the court would likely recognize Fox as an expert, thus allowing Ripple to be deposed rather than striking her testimony from the record.
At press time, XRP was trading at $0.53761.
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