SEC Drops Ripple Exec Charges: What’s Next in Lawsuit?

It’s surely an XRP and Ripple Day, the lawsuit against Ripple’s executives has been permanently dismissed, leaving no room for future action. However, the SEC isn’t giving up on its claims against Ripple. Ripple’s chief legal officer views this as a complete “surrender” rather than a negotiated settlement. The rationale behind dropping charges against the executives remains enigmatic.

Some legal experts speculate that the SEC may be strategizing to appeal the court’s classification decision on XRP after the trial reaches its conclusion. It’s a move that raises intriguing questions about the SEC’s next steps. So, what are the next steps in the Ripple case? And does this mean there be no appeal in April? 

With No Further Appeal, Here’s What You Can Expect in the Ripple Case: 

Eleanor Terrett’s recent tweet raises important questions about the next steps in the Ripple case. With the SEC dropping charges against Brad Garlinghouse and Chris Larsen, attention now shifts to the penalty phase, where both parties will engage in legal battles over the appropriate penalty for Ripple’s institutional sales, exceeding $700 million.

One likely focus will be the penalty phase, where Ripple and the SEC will likely engage in extensive litigation regarding the appropriate penalty for Ripple’s institutional sales, which total over $700 million. Legal experts suggest that Ripple may manage to reduce the penalty, but the SEC will likely still push for a substantial amount.

Importantly, the SEC can appeal Judge Torres’s decision on XRP’s “programmatic sales” and “other distributions”. On October 3, Judge Torres refused the SEC’s interlocutory appeal, forcing them to wait until after the trial. Without a trial, the SEC may appeal after the penalty phase. 

Attorney Bill Morgan, an expert in the field, highlights that the next phase will involve discussions between the SEC and Ripple regarding the potential briefing schedule for pending issues in the case.

This includes deliberations on what remedies are appropriate against Ripple for its alleged Section 5 violations concerning the Institutional Sales of XRP.

The parties have requested until November 9, 2023, to propose such a schedule to the court. If mutual agreement cannot be reached, they will seek a contested basis for a briefing schedule from the court. 

Do We See Ripple IPO Coming? 

With the recent SEC announcement to drop charges against its executives has fueled speculation about the company’s plans for an initial public offering (IPO).

These rumors, initially sparked by the hiring of a “Shareholder Communications Senior Manager,” could signify a strategic move for Ripple following its legal battles. Ripple’s share price surged by 9%, reaching an intra-day high of $0.52, and the 24-hour trading volume increased by 45% in response to the news.