The U.S. Securities and Exchange Commission (SEC) has filed a motion to compel Ripple Labs to produce financial statements for the years 2022-2023 and post-complaint contracts governing institutional sales of XRP. This move has reignited interest in the ongoing SEC vs. Ripple case among XRP investors. The SEC’s request is part of the remedies-related discovery process that must be completed by February 12, followed by an SEC reply brief before Judge Analisa Torres can decide on the penalty for selling XRP to US institutional investors.
Experts suggest that the SEC may seek $770 million in penalties, a figure that could be revised based on the financial statements from Ripple. These documents will provide the SEC with an estimate of the sales proceeds and expenses related to XRP sales. However, it is expected that Judge Torres will significantly reduce the proposed penalty.
In the past year, Ripple Labs has had several minor victories against the SEC. The most significant was the court’s decision on July 13 that the crypto asset XRP is not a security. This ruling clarified that XRP sales on exchanges, by Ripple executives, and distributions to developers, charities, and employees were not securities. The only remaining issue is the institutional sales of XRP.
Another notable victory was the SEC dropping all charges against Ripple executives Chris Larsen and Brad Garlinghouse in the case related to XRP sales. Many experts interpret these developments as signs that the SEC is losing the case it initiated nearly three years ago. The outcome could be Ripple paying an acceptable fine or the SEC losing the case outright, which would allow for the continued growth and development of Ripple and XRP.
Amid these developments, there is speculation about the launch of an XRP ETF. Steven McClurg of Valkyrie Investments recently hinted at the likelihood of increased applications for Ethereum and Ripple ETFs, citing recent developments such as Grayscale’s inclusion of Ripple in its publicly traded securities trust. However, it remains uncertain whether the SEC would approve an XRP spot ETF due to SEC Chair Gary Gensler’s skepticism towards most digital assets other than Bitcoin.
In the past 24 hours, XRP has seen a marginal drop of less than 1% to trade at $0.59. On the weekly charts, the 6th-ranked coin is up by nearly 4%.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 🇮🇪 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Chris Larsen, Brad Garlinghouse, Analisa Torres, James K. Filan, Steven McClurg |
| Companies | Grayscale, U.S. Securities and Exchange Commission, Ripple Labs, Valkyrie Investments |
| Currencies | Bitcoin, Ethereum, XRP |
| Securities | None |
