Expert Highlights Next Steps in SEC v. Ripple Case as SEC Drops Charges Against Ripple Executives

Eleanor Terrett has highlighted the next line of action in the Ripple case following the SEC’s decision to drop charges against the company’s execs.

It is no longer news that the SEC has dropped its charges against Ripple’s execs Chris Larsen and Brad Garlinghouse.

Next Steps in SEC v. Ripple Case

Since the SEC dropped its charges against Ripple execs, the expected trial scheduled for April 2024 will no longer be held. Now, the only pending issue in the case is the remedies stage regarding Ripple’s violation of securities laws via the sale of over $700 million worth of XRP to institutional clients.

Notably, the remedies stage will focus on determining appropriate penalties regarding Ripple’s violation of securities laws.

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According to the court, the parties intend to meet for a potential briefing schedule with respect to remedies. As per the recent order, both the SEC and Ripple Labs have until November 9, 2023, to propose the briefing schedule to the court.

The next phase in the Ripple case pic.twitter.com/MX9A1M982e

— bill morgan (@Belisarius2020) October 19, 2023

More Litigation During Remedies

Meanwhile, Fox Business journalist Eleanor Terrett has taken to X (formerly Twitter) to highlight the next line of action in the ongoing lawsuit.

Terrett, who has closely followed the SEC v. Ripple case, urged the crypto community, especially XRP fans, to expect more litigation during the remedies stage.

“Expect to see some more litigation in the penalty phase between the two parties in regards to the appropriate penalty for Ripple‘s $700M+ of institutional sales,” she noted.

Citing sources familiar with the matter, Terrett said Ripple could potentially reduce the penalty. However, she noted that the SEC would want a substantial amount of the penalty for its bragging rights.

The Fox Business journalist disclosed that lawyers familiar with the matter told her to expect a big fight during the remedies stage.

🚨SO, what are next steps in the @Ripple case?

Now that the @SECGov has dropped the charges against @bgarlinghouse and @chrislarsensf, expect to see some more litigation in the penalty phase between the two parties in regards to the appropriate penalty for Ripple‘s $700M+ of… https://t.co/4jJAzKtTjp

— Eleanor Terrett (@EleanorTerrett) October 19, 2023

SEC Can Still Appeal After Penalty Stage

Recall that the court denied the SEC’s request to certify an interlocutory appeal that could have enabled it to challenge Judge Analisa Torres’ decision on Ripple’s programmatic sales of XRP and other distributions.

On October 3, the court ordered the SEC to wait until after all pending issues in the case have been resolved before it is allowed to appeal the parts of the summary judgment it lost.

Per Terrett, the SEC can potentially appeal Judge Analisa Torres’ July 13 decision concerning Ripple’s programmatic sales of XRP and other distributions after the penalty stage.

A Big Win for Ripple and Another Loss for SEC

Furthermore, she highlighted the significance of the recent development in the lawsuit.

“This is a BIG victory for Ripple and the #crypto industry as a whole, and another loss to add to the pile for the SEC,” she noted.

It bears mentioning that the SEC has suffered major defeats in the lawsuit. Firstly, the court denied the SEC’s request to protect Hinman’s documents, the drafts of William Hinman’s 2018 speech on crypto.

In addition, the July 13 summary judgment saw Ripple record a partial victory against the SEC. As reported, the court found that Ripple’s programmatic sales of XRP and other distributions do not constitute securities.

Judge Torres also denied the SEC’s request to certify an interlocutory appeal to challenge the court’s July 13 decision.

Besides the Ripple case, the SEC also suffered another defeat against crypto asset manager Grayscale Investments. The Crypto Basic reported that an Appeal Court ordered the SEC to review the decision that resulted in the rejection of Grayscale’s application for the conversion of its Bitcoin Trust (GBTC) into a spot Bitcoin fund.