Ripple vs SEC: Decoding Legal Drama, What’s Next in the XRP Lawsuit?
The post Ripple vs SEC: Decoding Legal Drama, What’s Next in the XRP Lawsuit? appeared first on Coinpedia Fintech News
In the recent episode of CryptoLaw TV, renowned crypto lawyer John Deaton dissected the potential outcomes for Ripple in its ongoing legal case with the SEC following the recent scheduling order, which maps out the final stages of the trial.
Deaton pointed out essential dates in the judge’s order, crucial for Ripple’s case. The first key date is February 12th, marking the end of the discovery phase related to remedies.
Following this, on March 13th, the SEC will detail the penalties they seek from Ripple. Ripple’s response is due by April 12th, and the SEC’s final reply is set for April 29th. These dates set a timeline for when we might expect a resolution in the case. Finally.
The Significance of Remedies in the Case
What stands out in Deaton’s analysis is his emphasis on the nature of remedies Ripple might face. Ripple’s case doesn’t involve fraud but centers on allegations of failing to disclose appropriately. This is a vital distinction, as the focus shifts from punitive measures to finding a suitable remedy for the alleged lack of disclosure. This context could significantly influence the judge’s decision on penalties.
Deaton cited the Lou vs. SEC and Govo cases to explain the principles guiding disgorgement or the repayment of ill-gotten gains. According to these precedents, penalties should not exceed a wrongdoer’s net profits and must be intended to compensate victims. This could substantially impact the potential financial penalties against Ripple.
How XRP Sales Play into the Equation
John Deaton also emphasized the importance of differentiating XRP sales within the U.S. from those abroad. He speculated on the potential impact of international sales on the SEC’s case, considering the Morrison case’s limitations on the SEC’s jurisdiction.
This differentiation is crucial as it could substantially reduce the portion of the XRP sales subject to SEC action. Deaton’s analysis suggests that if a significant volume of Ripple’s sales occurred outside the U.S., the total figure under scrutiny could decrease markedly.
The exact proportion of domestic versus international sales would play a crucial role in the final stages of the trial, potentially influencing the magnitude of any financial penalties imposed on Ripple.
Filed under: Bitcoin - @ November 15, 2023 6:12 am