A prominent legal expert has provided an update on the Ripple versus SEC lawsuit, sharing anticipated dates to keep an eye on. The recent Wells Notice issued to Robinhood has also caused concern within the industry. Marc Fagel, an experienced securities litigation specialist, has offered insights and a timeline regarding the ongoing legal battle between Ripple Labs Inc. and the US Securities and Exchange Commission (SEC).
Fagel dismissed premature conclusions made about the Ripple vs SEC case, in response to a post by Brett Hill, an ambassador to Bitrue crypto exchange. Hill stated that the case would soon reach a final verdict after Judge Torres’ decision on Ripple’s fine. Fagel, however, explained in a subsequent post that while the SEC is expected to file a reply brief on remedies on Monday, it could take the court several weeks or even months to reach a final decision.
According to a previous report by Crypto News Flash, Ripple disputed the SEC’s pursuit of a $2 billion fine in its opposition brief, arguing for a lower penalty. Ripple maintained that it complied with regulations by using ODL contracts to minimize potential profit and loss, while the SEC claimed that the sales of XRP were securities.
In a recent update, the SEC submitted its remedies, reply brief, and supporting materials on Monday, as announced by Crypto News Flash. Defense attorney James Filan provided the update, noting that publicly redacted versions of the documents would be filed on May 8.
As part of the process of sealing the materials related to the remedies-related briefing, all parties involved, including Ripple, the SEC, and third parties, are required to file an Omnibus letter motion. Once this is completed, the concerned parties must submit a proposal for redacting the materials. Additionally, opposition briefs to the omnibus letter motions must be filed by May 20, and within 14 days of the decisions made on sealing the omnibus letter, public, redacted copies of all documents must be provided.
At the time of writing, XRP is being traded at $0.5393, showing a 7% increase in the past week, with a trading volume of $1.8 billion and a market cap of $29.7 billion.
In a separate development, Robinhood Crypto has come under scrutiny from the SEC. On Monday, Robinhood announced that it had received a Wells Notice from the SEC regarding tokens traded on its platform. The regulator alleged that Robinhood Crypto had violated securities law. However, it is important to note that receiving a Wells Notice does not necessarily indicate wrongdoing on the part of the firm.
Fagel explained the significance of the Wells Notice in a subsequent post, emphasizing that it would take a few months for the process to unfold. The Wells Notice indicates that the SEC’s enforcement division has completed an investigation and will recommend filing a lawsuit, but this process usually takes a few months to complete.