Judge Analisa Torres has now set the stage for the next pivotal chapter in the SEC vs. Ripple case. Consequently, both parties have been tasked to recommend a joint briefing schedule for the remedies phase by November 9, 2023. This phase will shed light on the potential repercussions Ripple Labs might face over its sales of XRP to institutional clients.
The court has already deemed these transactions as investment contracts. However, the true legality of Ripple’s institutional sales is still shrouded in ambiguity. Additionally, in a recent twist, the SEC’s plea to delay the trial against Ripple’s key executives, Brad Garlinghouse and Chris Larsen, has been approved. Hence, the initial trial discussions and trial dates remain on hold, signaling further legal twists and turns.
One of the burning questions is the size of the penalty that might be imposed on Ripple. With institutional XRP sales hitting an impressive $770 million, experts are engrossed in speculation about Ripple’s potential financial blow. Significantly, the current increase in Ripple futures and options activity highlights the growing anticipation surrounding the November 9 date. From a previous low of $374 million in early September, these figures have surged by 48.4% to $555 million.
Drawing from past SEC settlements, John Deaton, an advocate for XRP, references the LBRY case. The SEC had initially slapped LBRY with a $23 million penalty. However, after prolonged legal proceedings, they settled for a mere $130,000. This precedent implies that Ripple’s eventual penalty might not match initial SEC estimates.
Moreover, Eleanor Terrett, a journalist at Fox Business, believes that the battle over penalties won’t be straightforward. While Ripple would naturally want to lessen the blow, the SEC, on the other hand, might push hard to underline its authority.
All eyes are now on the upcoming remedies briefing phase. This, combined with the subsequent penalty phase, will play a crucial role in shaping the outcome of this legal encounter. As the courtroom drama unfolds, Ripple’s native tokens have seen a 15.1% rise in the last week, showcasing the case’s direct impact on XRP’s market health.
