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- A top legal expert has shared an update with expected dates to watch in the Ripple versus SEC lawsuit.
- The industry was spooked by the recent Wells Notice to Robinhood.
Marc Fagel, a legal veteran known for his expertise in securities litigation, recently provided a timeline and insights on the ongoing legal saga between Ripple Labs Inc. and the US Securities and Exchange Commission (SEC).
Fagel Dismisses Premature Conclusion of Ripple vs SEC Case
Fagel’s insights are in response to a post from Brett Hill, an ambassador to Bitrue crypto exchange. In the post, Hills said the Ripple vs SEC case is set for a final verdict following Judge Torres’ decision on the fine for Ripple.
However, Fagel highlighted in an X post that while the SEC is anticipated to file a reply brief on remedies on Monday, it could take the court a month or two to reach a final decision.
“They’ve replied and the parties are awaiting a ruling on the motion to strike. Tomorrow is the due date for the SEC’s reply brief on remedies. But it will take the court some time to rule, maybe a month or two, which is why the post above is nonsense,” Fagel stated.
They’ve replied and the parties are awaiting a ruling on the motion to strike. Tomorrow is the due date for the SEC’s reply brief on remedies. But it will take the court some time to rule, maybe a month or two, which is why the post above is nonsense.
— Marc Fagel (@Marc_Fagel) May 5, 2024
According to a prior report by Crypto News Flash, Ripple, in its opposition brief, disputed the SEC’s pursuit of a $2 billion fine, arguing for a lower penalty. While the SEC claims the sales of XRP constituted securities, Ripple contested that it complied with regulations by using ODL contracts to minimize the possibility of profit and loss.
In a recent update, the SEC submitted its remedies, reply brief, and supporting materials on Monday, per Crypto News Flash’s earlier announcement. Defense attorney James Filan gave the update, emphasizing that the publicly redacted versions would be filed on May 8.
As part of the process of sealing the materials relating to the remedies-related briefing, both parties and third parties are required to file an Omnibus letter motion. As soon as this is done, the parties concerned will be required to submit a proposal for the material’s redaction.
Furthermore, Ripple, SEC, and third parties must file opposition briefs to the omnibus letter motions to seal all by May 20. The parties concerned must provide public, redacted copies of all the documents within 14 days after the decisions made on motions to seal the omnibus letter.
As of this writing, XRP is trading at $0.5393, demonstrating an increase of 7% in the past week with trading volume and market cap standing at $1.8 billion and $29.7 billion respectively.
SEC Scrutinizes Robinhood
In a parallel development, Robinhood Crypto has found itself under the watchful eyes of the SEC.
On Monday, Robinhood said it received a Wells Notice from the SEC over tokens traded on its platform. The regulator alleged that Robinhood Crypto violated securities law. However, it is worth noting that a Wells Notice does not necessarily mean the firm has engaged in wrongdoing.
In an X post, Fagel explained the relevance of the Wells Notice, emphasizing that it would take a few months for the process to play out.
What this means is the SEC’s enforcement division has completed an investigation and will recommend that the 5 commissioners authorize it to file a lawsuit. Usually takes a few months for that process to play out.
— Marc Fagel (@Marc_Fagel) May 6, 2024
