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SEC demands court sanctions against Ripple

The SEC filed a brief with the court proposing sanctions against Ripple (XRP). We will find out what is in it on May 8th.

Litigation between the SEC and Ripple continues. The crypto community is speculating about what the outcome of the case will be. It also suggests what measures and sanctions the regulator will propose.

What's happened

The fact that the Commission sent documents to the court, wrote James Filan, a well-known lawyer in cryptocurrency circles. He attached to the tweet a detailed timeline of legal events that await the SEC and Ripple in May.

May 7 The parties will meet to discuss changes that need to be made to the regulator’s response note. The SEC and Ripple need to determine what information will remain secret and what will become public.

may 13 everyone will submit their petitions and try to disclose a minimum of information, hiding it behind non-disclosure requests.

May 20 We are waiting for another round of motions to reject those same non-disclosure requests.

What may be in SEC documents

Previously, the regulator asked the court to collect a fine of about $2 billion from Ripple for violating securities laws. This happened almost immediately after Southern District of New York Judge Analisa Torres ruled in favor of the crypto project.

In addition, the SEC also demanded that the site be granted an injunction against operations and forced to pay all damages caused to investors. The regulator clarified that only with the help of a court injunction will the payment service no longer violate anything.

The Ripple crypto platform opposed the SEC's demands and did not agree with the amount of the civil fine. According to the defense, all the regulator’s statements are completely unfounded.

The Commission's arguments on why the court should satisfy all its demands are expected to become known tomorrow.

When to expect a final decision

Some members of the crypto community speculate when the proceedings between Ripple and the SEC will end.

Crypto influencer Ashley Prosper believesthat Judge Torres will make a final verdict between July and September of this year. She also does not rule out that the parties may come to an agreement before this date.

A similar opinion was expressed by the famous crypto lawyer John Deaton back in November 2023. According to him, the final decision in the Ripple case may be made by the end of the coming summer.

What's happening to the price of XRP

After the news appeared, the XRP rate briefly increased by 8% – from $0.53 to $0.57. However, the indicator very quickly dropped to its original value.

According to CoinGecko, at the time of writing, the Ripple token is trading at $0.53. In total, over the past 24 hours the asset has risen in price by 1.3%, and over the week its price has increased by 9%.

Currently, XRP ranks seventh in the ranking of cryptocurrencies by capitalization. The market value of the coin is estimated at $29.7 billion.

The further development of the Ripple and SEC litigation will be critical to the dynamics of the project's native token. Good news can serve as a good factor for recovery, while negative news can aggravate the sell-off.

Source: Cryptocurrency

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