The SEC responded to Terraform Lab‘s filings, complicating ODL sales and affecting the XRP market performance.
The ongoing legal dispute between the Securities and Exchange Commission (SEC) and Ripple Labs has seen new developments.
As per a post by James K. Filan on X (formerly known as Twitter), the SEC has responded to Ripple’s recent filings concerning the Terraform Labs Consent Judgment.
Ripple vs. SEC: Uncertainty Over ODL Sales Continues
XRP lawyer Bill Morgan has disclosed that the SEC has accused Ripple of engaging in practices that are “awfully similar” to previous violations.
This ongoing disagreement further complicates the legal landscape for Ripple’s On-Demand Liquidity (ODL) service.
The SEC claims that Ripple’s current ODL sales methods are similar to those that were previously declared violations.
The court lacks comprehensive records to ascertain whether these sales violate existing regulations, despite warnings from the SEC.
The intricate litigation between the SEC and XRP is further complicated by this complexity.
The legal discourse is further complicated by the potential for the SEC to appeal the summary judgment issued in July.
Legal experts predict that the final judgment in the SEC Vs. Ripple Labs case could be issued in July.
The SEC might also appeal Judge Torres’s ruling, which determined that XRP programmatic sales are not security contracts.
The ongoing uncertainty keeps both sides on edge, with the possibility of further legal twists and turns.
XRP Price Drops Amid Legal Uncertainty
Pro-XRP lawyer Fred Rispoli has forecasted a ruling by Judge Torres on remedies by the end of July or early August.
He posits that Judge Torres may render a poetic ruling on July 13.
Ripple contends that the penalty should not surpass $10 million, while the SEC is advocating for $2 billion in fines and penalties.
Rispoli observed that although a settlement is feasible, the probability is presently at zero percent.
The SEC and Ripple could still settle points that judges will need to consider in the verdict.
However, the XRP community believes that the litigation may ultimately conclude in the appeals court, despite these developments.
In this context, the role of Judge Netburn remains uncertain.
Rispoli stated that Netburn and Torres could consult and determine that the matter before Netburn does not require a ruling.
Judge Torres has the option of omitting the expert witness issue and issuing a final judgment on injunctions and remedies.
However, this is highly probable to transpire only if the ruling is in Ripple’s favor.
The market performance of XRP has been affected by the ongoing legal uncertainty.
Currently, XRP price is trading with an adverse sentiment, and it is currently trading at $0.4759, representing a 0.43% decrease.
XRP has experienced a high of $0.4808 and a low of $0.4647 in the past 24 hours.
