Ripple Vs SEC: Top Execs Free of Charges, but XRP’s Fate Remains Hazy

For all XRP users, this is surely a day of celebration.

In a significant twist, the lawsuit against Ripple’s top leaders has been permanently dropped, putting a stop to future legal action. But, the U.S. Securities and Exchange Commission (SEC) is sticking to its plan of pursuing Ripple. The company’s chief legal officer sees it as a clear “surrender” without any compromise, raising questions about why the charges were dismissed.

Some legal experts speculate that the SEC may be strategizing to appeal the court’s classification decision on XRP after the trial reaches its conclusion. It’s a move that raises questions about the SEC’s next steps. So, what are the next steps in the Ripple case? And does this mean there shall be no appeal in April? 

Expert Insights

Eleanor Terrett’s recent tweet brings vital questions about the Ripple case into focus. With charges dropped against Brad Garlinghouse and Chris Larsen, attention shifts to the penalty phase, where both sides will battle it out over Ripple’s institutional sales exceeding $700 million.

The penalty phase takes center stage as Ripple and the SEC engage in extensive legal disputes regarding the suitable penalty for Ripple’s institutional sales, which are more than $700 million. Legal experts suggest that Ripple may try to lessen the penalty, but the SEC is expected to push for a substantial amount

What’s the Reason?

Importantly, the SEC has the option to appeal Judge Torres’s decision concerning XRP’s “programmatic sales” and “other distributions.” Judge Torres declined the SEC’s interlocutory appeal on October 3, forcing them to wait until the trial concludes. Without a quick resolution in the penalty phase, the SEC may choose to appeal later.

The Road Ahead

Prominent attorney Bill Morgan, an expert in the field, explains the upcoming phase, involving discussions between the SEC and Ripple about a potential schedule for unsettled matters in the case. This includes determining the appropriate actions against Ripple for its alleged Section 5 violations related to the Institutional Sales of XRP.

Both parties have requested an extension until November 9, 2023, to propose this schedule to the court. If they can’t reach an agreement, they’ll ask the court to set a schedule.

Read More: Is Ripple vs SEC Settlement on Horizon? Here’s What To Expect Next?

Is An IPO Coming?

Following the recent SEC announcement about charges against its executives, rumors have swirled about Ripple considering an initial public offering (IPO). These speculations, initially sparked by the hiring of a “Shareholder Communications Senior Manager,” could indicate a strategic move for Ripple after its legal battles. In response to this news, Ripple’s share price surged by 9%, reaching a high of $0.52 during the day, and the 24-hour trading volume increased by 45%.

These developments keep the Ripple case in the spotlight, leaving observers eager to see what unfolds next.