Ripple The ongoing legal battle between the US Securities and Exchange Commission (SEC) and the US Securities and Exchange Commission (SEC) has progressed towards the hearing, where many expect an outcome soon. Attorney James K. Filan announced a new program targeting Magistrate Judge Sarah Netburn’s proposed resolutions and final decision. The SEC must respond by April 29, and the company has three business days after that to respond.
Judge Netburn gave the SEC until April 29, 2024 to present its arguments against Ripple’s request. Ripple will then have three business days to respond.
This scheduling update follows Judge Netburn’s recent appointment as District Judge for the Southern District of New York. Despite its new mandate, Ripple vs. He will remain the presiding judge in the SEC case, where he will be noted for his impartial rulings that are generally viewed favorably by the crypto community.
“My understanding of XRP is not just that it has a currency value, but that it also has a utility, and that utility differentiates it from Bitcoin and Ethereum,” Judge said in 2021, according to attorney Jeremy Hogan.
XRP objected to the SEC’s request for significant civil penalties. The blockchain payments company opposed the SEC’s request for a hefty fine and instead proposed a maximum penalty of $10 million. Ripple argues that the SEC’s allegations are unfounded and lack sufficient evidence.
Ripple’s representative, Bill Morgan, has consistently argued for the last three years that Ripple On-Demand Liquidity (ODL) sales do not constitute an investment contract. According to Morgan, the nature of ODL transactions differs from traditional investments. He points out that customers only use XRP for a few seconds to enable cross-border payments, not for investment purposes.
Ripple emphasizes that the SEC has not proven the possibility of any future violations or recklessness in its sales of XRP, and highlights the lack of evidence of financial harm, citing the Govil case to challenge the SEC’s disgorgement claim.
