The Ripple Labs case with the US Securities and Exchange Commission (SEC) has taken another turn of events, this time in favor of the regulator. XRP might be facing a negative impact based on the latest proceedings of the legal battle, as the Ripple Labs CEO targeted the SEC this week.
The case between the two parties is set to extend till 2024, as both parties aim to work on remedies. XRP has seen a decrease in its market value to $0.6593, and investors are growing worried since the impact of the court proceedings has yet to reflect in the digital space.
XRP price decline following the Ripple vs. SEC case
On Wednesday, XRP fell by 3%, and following this was a 1.12% drop on Friday. Investors reacted to this news with a slight caution. Ripple and SEC filed a joint briefing schedule that passed the onus to the court to pick a scheduled date. Based on the briefing schedule, the process of remedies-related proceedings will commence on the court’s scheduled order.
Additionally, the regulatory authority seeks to obtain remedies related to discoveries that date from the complaint in December 2020. In an argument, the SEC stated the need for this documentation that is necessary for monetary and injunctive remedies.
This has set sight for the Securities and Exchange Commission to target a $770 million penalty. The documents will include financial statements related to Ripple’s activities. Moreover, the SEC could proceed with actions that limit business expense deductions.
Jeremy Hogan, an Attorney to the legal case, shared his views on the expected settlement, and he explained his belief on the regulatory body elevating disgorgement damages. This could result in bulking Ripple with substantial proof in its action to refute the damages.
The attorney also commented that Ripple could be in trouble as the regulator might argue the company’s expenditure that contributed to other violations. This would support their argument for suspending their business expenses from the remedies-related discovery.
Commentary on the case proceedings
The remedies-related discovery period has been extended further by 90 days, and this takes the legal battle proceedings into next year. In light of whether XRP is a security or not, Attorney Jeremy Hogan said,
[…] how rare is it that the SEC sues a company for selling an unregistered security and during the litigation the price of the security increases? Very rare. And that might be another indication that the security is… not a security.
Jeremy Hogan
Brad Garlinghouse, Ripple’s CEO, has been a strong advocate for his company and has commented on his strong stand against the US Securities and Exchange Commission as he spoke at the DC Fintech 2023.
He suggested that Ripple was all in and even ready to go to the Supreme Court, explaining that this would be a good thing for crypto firms. He added, “The current Supreme Court, we’d love to see the Vegas odds on how that would go. They have not been friendly to regulators.”
Additionally, the CEO said that the SEC needs to pick its options carefully and stated that an appeal would edify a ruling in favor of XRP. Based on market data, XRP held above the 50-day EMA as well as the 200-day indicator.
This still affirmed a bullish trend, and if its price peaks back to $0.68, the bulls could push this price past the resistance level at $0.705.
Moreover, the pivotal factor causing this market movement is the SEC vs. Ripple case, including the pressure put on the company as investors grow impatient to see a win for the crypto firm.
