Regulation
Ripple vs. SEC Lawsuit Over ODL Sales Continues Amid New Allegations
The ongoing legal battle between Ripple Labs and the US SEC has taken a new turn as the SEC accuses Ripple of engaging in sales practices that reflect past violations.
According to recent updates shared by attorney James K. Filan on ODL) from Ripple.
Allegations of recurring practices
The SEC says Ripple’s current ODL sales practices are “egregiously similar” to previous actions that were considered violations. Attorney Bill Morgan Underlines these concerns, indicating that despite previous regulatory actions, Ripple continues to engage in questionable conduct. The SEC’s assertions have complicated Ripple’s legal landscape, suggesting that the company’s compliance with regulatory guidelines remains uncertain.
This scrutiny has placed Ripple’s ODL service, a critical part of its business model, under a cloud of legal uncertainty. The SEC’s response to Ripple’s filings focuses on a pattern of behavior that the regulator finds problematic, raising questions about Ripple’s compliance with existing regulations.
The court currently lacks complete records to determine whether Ripple’s ongoing ODL sales violate existing regulations. This lack of evidence complicates the judge’s ability to make a decisive decision in the matter. The SEC’s allegations highlight the need for more detailed documentation and evidence to verify the legality of Ripple’s current business practices.
Pro-XRP lawyer Fred Rispoli suggested that final judgment on the appeals could be rendered by Judge Torres by late July or early August. However, the SEC may appeal the summary judgment issued in July, further adding to the complexity of the case. This potential appeal highlights the unresolved nature of the legal dispute and its impact on Ripple’s operations.
Financial sanctions and legal proceedings
The SEC is seeking $2 billion in fines and Ripple penalties, while Ripple says the penalty should not exceed $10 million. This significant disparity in the proposed sanctions highlights the contentious nature of the ongoing disputes. Despite discussions surrounding a possible settlement, Rispoli said the chances of a settlement are currently minimal.
The legal proceedings are expected to continue, with both sides preparing for further arguments and possible appeals. Judge Netburn’s role in this context remains unclear, as she and Judge Torres could decide whether the issue before Netburn requires adjudication or whether Judge Torres can make final judgment on appeals and injunctions.
`Market Response and XRP Price Movements
The legal uncertainty surrounding the Ripple v. SEC lawsuit has had a notable impact on the performance of the XRP market. At press time, XRP was trading at $0.4785, an increase of 0.13% over the past 24 hours, according to CoinMarketCap data.
Despite the legal difficulties, XRP trading volume saw an increase of 2.18%, reaching $1,058,597,050, with a market capitalization of $26,602,286,830. This indicates a level of activity and interest in the market, even amid continued legal uncertainties.