Attorney Sheds Light On Possible SEC Judgement As Ripple Enters Final Days Of Legal Battle
An attorney has provided insights on the impending court judgment from the United States Securities and Exchange Commission (SEC) concerning its lawsuit against Ripple. As the legal battle finally appears to be approaching its end, the attorney has outlined how the potential judgements could impact Ripple’s reputation and digital asset operations in the United States (US).
Impending SEC Judgements For Ripple
Fred Rispoli, the founder of HODL law, was recently featured in a YouTube video hosted on the Thinking Crypto podcast, by Tony Edward. When asked if the judgement against Ripple would involve penalties for institutional sales of XRP, Rispoli confirmed that Ripple would indeed be mandated to pay a specified amount in fines.
He disclosed that the penalty would not be as severe as the SEC’s initial $2 billion fine for selling XRP to institutional investors. However, he also acknowledged that a $2 billion penalty fee would be challenging and detrimental for the crypto firm but not fatal to the company.
Rispoli has predicted that the SEC’s judgment will most likely be under $25 million, accompanied by a penalty as opposed to disgorgement. He added that the most important aspect of the forthcoming judgment would be Ripple’s injunction and the potential restrictions placed on the company. According to the attorney, these injunction terms would hold considerable significance for Ripple’s future operations and financial interests.
The HODL law founder also disclosed that the SEC desires a “broad sweeping injunction” for Ripple. He highlighted that the regulator had written in their proposed order last year, to restrict its ability to execute any activities that could be remotely ruled as unregistered securities transactions.
However, Rispoli has revealed that the Judge would most likely avoid any new cases the SEC brings up that have no litigation. He emphasized that when a government entity like the US SEC is involved in a lawsuit they typically have 60 days to file a notice of appeal instead of the standard 30 days. Once Ripple’s judgment has been confirmed, the SEC will have exactly 60 days to decide on whether they will appeal.
Future Implications Of Legal Battle
While speaking on the outcome of the legal case between Ripple and the SEC, Rispoli disclosed that Ripple may have to push their operations outside of the US if the outcome of the lawsuit becomes detrimental. He highlighted that this would be a massive blow to the US economy, given the firm’s status as a leading crypto payments company and its future goals to become a global alternative to the SWIFT network.
He also disclosed that Ripple’s plans for an Initial Public Offering (IPO) may be hindered or delayed by the SEC. Additionally, the company’s launch of a stablecoin in the future could be seen as a security, given the SEC’s anti-crypto stance.