Ripple vs SEC Verdict Expected in July: Here’s What to Expect

As the SEC vs Ripple legal battle nears its conclusion, legal experts are discussing the next steps. Unless the SEC introduces any unexpected developments, experts predict the much-awaited final verdict could come in July. Lawyers believe the SEC will likely appeal the summary judgment, which Judge Torres ruled, stating that XRP’s programmatic sales are not securities contracts. This ruling could set a significant precedent for future cases.

Are we finally going to get the verdict we have all been waiting for?

Verdict on Remedies Expected Soon!

Pro-XRP lawyer Fred Rispoli expects Judge Torres to rule on remedies by late July or early August, possibly even on July 13. The SEC has demanded a hefty penalty of $2 billion, while Ripple argues the fine should be no more than $10 million.

Rispoli also mentioned that a pre-judgment settlement is unlikely, though some unresolved arguments could still be negotiated. The SEC can appeal the ruling on programmatic sales but cannot challenge the dismissal of claims against Ripple executives Brad Garlinghouse and Chris Larsen.

Differing Opinions on Appeal Likelihood

Former SEC securities lawyer Marc Fagel expects the SEC to appeal the summary judgment on XRP’s liability, disagreeing with Judge Torres’s interpretation of the Howey test. However, he considers an appeal on the remedies order less likely.

The motion regarding the expert witness remains contentious. Lawyers Bill Morgan and Jeremy Hogan believe Ripple will likely lose the motion to exclude the testimony of expert witness Andrea Fox. However, Fred Rispoli noted that Judge Torres might not address this issue if her final ruling favors Ripple.

Impact of Terraform Labs Settlement

The recent settlement between Terraform Labs and the SEC has significantly impacted the SEC vs Ripple lawsuit. Terraform and its co-founder Do Kwon were fined $4.47 billion, sparking controversy within the crypto community. Critics like Coinbase CLO Paul Grewal and Ripple CLO Stuart Alderoty argue that the SEC’s heavy fines do not provide meaningful relief to fraud victims.

Ripple’s Stand on Penalty Proportionality

The Terra Luna crisis wiped out $40 billion in investor wealth, leading to increased scrutiny of the SEC’s enforcement actions. Former SEC lawyer James Farrell noted that the injunction in the Terraform case parallels Ripple’s arguments, particularly concerning penalty proportionality. Ripple maintains that a fine exceeding $10 million would be excessive, considering precedents in similar crypto cases.

Also, check out: Ripple vs SEC Lawsuit: Can $2B Fine Be Reduced? Will Terraform Labs Settlement Influence Outcome?

Join the conversation: The SEC vs. Ripple lawsuit has sparked heated debate within the crypto community. What are your predictions for the outcome?