Ripple Vs. SEC Lawsuit Could End In 7 Possible Ways

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The SEC vs Ripple case has taken a U-turn, and rumors of a prolonged legal battle and huge fines now exist. However, theories about the outcomes continue. One expert has shown all seven possible scenarios that might change the present scenario.

7 Scenarios in Ripple Case, Which You Need to Know? 

Ashley Prosper, an XRP enthusiast who previously filed a Freedom of Information Act (FOIA) request with the SEC regarding its communication with JPMorgan about Ripple and XRP, has outlined seven possible scenarios for how the SEC v. Ripple lawsuit might conclude.

Firstly, Prosper noted that both the parties could reach a settlement agreement, bringing an end to the prolonged legal dispute. Settlement discussions could happen at any time, but there are no ongoing talks in this regard. While Ripple is reportedly open to settling the dispute, the SEC has not shown any inclination to do so.

Secondly, Prosper speculates that the lawsuit might end if both parties accept the remedies ruling handed down by Judge Analisa Torres. This scenario would see neither party appealing the judge’s decisions, including any summary judgment and remedies rulings. In this scenario the outcome could potentially occur around 2024.

A third possibility outlined by Prosper is that either party or both could appeal to the Second Circuit after the remedies phase. If the court agrees with Judge Torres’ decision and no party takes the case to the Supreme Court, the lawsuit could conclude by 2025 – 2026.

Prosper also discusses several other potential outcomes, including appeals to higher courts, remands back to Judge Torres, and the possibility of the case reaching the Supreme Court. Each scenario comes with its own timeline, ranging from 2025 to 2028, depending on the legal proceedings and appeals process.

As of now, the lawsuit is in the remedies phase, where the appropriate remedy for Ripple’s alleged securities law violations is being determined. A recent ruling compelled Ripple to produce financial documents related to its sales of XRP to institutional clients, indicating the rigorous legal process ahead. However, Ripple has asked for a week’s extension to disclose all the documents but denied that it will drag the case further. 

What Next? 

Pro XRP lawyer John Deaton has chimed into the case outcome calling the legal battle between Ripple and the SEC as “scorched Earth litigation,” suggesting a tough and drawn-out fight. He anticipates potential fines for Ripple and emphasizes the SEC’s pursuit of significant penalties after extensive litigation. Deaton previously said the fines would be around $10M to $20M but with current progress he said it can go up to $100M. 

Despite initial optimism, the lawsuit’s complexity suggests a long battle. The outcome may affect bitcoin regulation and compliance. If an appeal is filed, Deaton will file an amicus brief for regulatory clarification rather than damages. Stay tuned for more updates.