Welcome to the Extreme Investor Network! Today we are diving into the latest developments in the SEC vs. Ripple case and how it impacts XRP and Ripple’s business goals.
Recently, XRP saw some gains, but they were short-lived as the SEC and Ripple progressed through the final stages of the case. The SEC filed a remedy-related opening brief on March 26, arguing that Ripple continued to breach the 1933 Securities Act post the December 2020 complaint. Ripple is now required to file its remedy-related opposition brief by April 22, which could determine the size of the penalty for selling unregistered XRP to institutional investors.
One key point of contention is whether Ripple sold unregistered XRP to US institutional investors after the complaint. Ripple might reference the Morrison vs. NAB case, where the Supreme Court ruled that the SEC only has jurisdiction over US-based sales. Failure to prove that all XRP sales were to non-US institutional investors could lead to a hefty $2 billion penalty, affecting Ripple’s US business objectives.
However, regardless of the case’s outcome, the SEC’s intentions to appeal the Programmatic Sales of XRP ruling pose a significant headwind for XRP. In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not meet the third prong of the Howey Test. Furthermore, in October, Judge Torres rejected an SEC Motion for Interlocutory Appeal, meaning the SEC must wait until the case’s conclusion to file appeals against court rulings.
Stay tuned to the Extreme Investor Network for more updates on the SEC vs. Ripple case and its impact on the stock market and trading landscape. Don’t miss out on exclusive insights and analysis to help you navigate the ever-changing world of Wall Street.
