The lawsuit between Ripple Labs and the SEC has reached a crucial stage, with Magistrate Judge Sarah Netburn establishing a timeline for the case. Ripple has challenged the SEC’s request for significant civil penalties, arguing that the allegations lack sufficient evidence. Despite Judge Netburn’s recent appointment as District Judge in the Southern District of New York, she remains the presiding judge in the Ripple vs. SEC case, known for her impartial decisions. The crypto community has responded positively to her approach. Ripple contests the SEC’s penalties, proposing a maximum penalty of $10 million instead of the hefty fine demanded by the SEC. The company argues that its On-Demand Liquidity transactions are distinct from traditional investments and should not be subjected to the same regulatory scrutiny. Ripple also addresses the absence of evidence supporting future violations or reckless behavior in its institutional XRP sales, strengthening its defense. Bill Morgan, Ripple’s representative, emphasizes that ODL sales should not be treated as investment contracts by the SEC. Despite the challenges, XRP supporters remain optimistic for a settlement that could potentially lead to a surge in the cryptocurrency’s price. Legal expert Jeremy Hogan predicts that the lawsuit could conclude by summer, speculating a potential settlement of $100 million. The SEC had initially demanded a $2 billion fine from Ripple, but the company argues that XRP should not be classified as a security. The SEC’s reply brief, due by May 6, is expected to shape market expectations. A strong response from the SEC could increase anticipation of punitive measures against Ripple, potentially impacting XRP’s value, which is currently trading at $0.503 with a 24-hour decline of 3%.
