In the recent XRP lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC), the agency privately filed a response to relief, signaling significant progress in the relief phase of the case. This phase focuses on determining potential sanctions the fintech company could face if the SEC succeeds in substantiating claims that Ripple conducted unauthorized securities transactions involving the XRP cryptocurrency.
Ripple Vs. SEC: Detailed schedule and upcoming events
James K. Filan, a former defense attorney who closely monitored the case, said: updated The XRP community responded via This document has not yet been made public. Public revisions will be accepted until Wednesday, May 8, 2024. Other sealing documents will follow.”
This filing is an important procedural step in the ongoing litigation, kicking off a series of legal actions centered on maintaining confidentiality and disclosure of sensitive material. Following yesterday’s sealed filing, Ripple and the SEC will meet today, May 7, to discuss and determine any necessary amendments to the reply brief and related documents involving both parties and third parties. The goal of this session is to determine what information will remain private and what information will be available to the public.
Tomorrow, May 8, the SEC will release a publicly redacted version of the response brief, along with all supporting exhibits not currently designated as confidential or top secret under the protective order. This release includes only the ad hoc edits requested at the May 7 meeting.
Additional motions to seal are planned for May 13, when all involved parties and third parties will file omnibus letter motions to seal all materials related to the relief brief. This includes briefings, statements and supporting exhibits, followed by a proposed compilation of these materials.
May 20th is the deadline for voting against the May 13th sealing motion. This process requires the parties to file redacted public versions of all documents within 14 days of the court’s decision on the motion to seal the omnibus.
Financial Interests and Ripple’s Defense
The stakes are high, with the fines the SEC is seeking totaling $2 billion. Ripple’s counterproposal proposes a fine of up to $10 million. The fintech company opposes the SEC’s proposed injunction and argues it has introduced significant changes to prevent future violations.
Ripple’s opposition to the SEC’s clawback request is based on the argument that the regulator failed to demonstrate that Ripple’s activities caused financial losses to institutional investors. Regarding civil penalties, Ripple is demanding a significant reduction, arguing that the SEC’s demands are disproportionate compared to fines imposed in similar cases.
Currently, a fierce battle is taking place over the testimony of expert witness Andrea Fox. Ripple disputes the SEC’s characterization of Fox’s expert declaration. Ripple’s objection suggests the SEC’s classification of testimony was flawed.
Jeremy Hogan, a legal expert in the XRP community, recently commented on the matter via X: “I think the SEC will win this motion.” He pointed out that based on past case outcomes, the court would likely recognize Fox as her expert and therefore allow Ripple to depose her rather than have her testimony removed from her record.
At press time, XRP was trading at $0.53761.
Featured image from Shutterstock, chart from TradingView.com