As the long running legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple is moving toward its final Judgment, debate over legal aspects among experts is getting heated up. In a recent salvo, Ripple’s legal chief fact checked the U.S. SEC chairman’s remark.
Ripple legal chief slams Gensler
U.S. chair Gary Gensler in a post invoked the words of the first SEC Chair, Joseph P. Kennedy, and highlighted the commission’s role as partners of honest business. However, he stated that the agency is the prosecutor of dishonesty.
The clash between Ripple and the SEC has intensified as Ripple’s legal chief challenged the SEC’s integrity and approach to the case.
Stuart Alderoty, the legal chief at Ripple stated that s while facing a lawsuit, the defendant has never been formally charged with “dishonesty.” He denounced the SEC’s handling of the case and alleged prejudgment from the outset. However, he particularly pointed out the former Director of U.S. SEC’s Division of Corporation Finance, Bill Hinman’s involvement and labeled him as ethically compromised.
Ripple’s legal head accused Gary Gensler of preconceived notions about the entire crypto sector. He asserted that lawsuits have been filed by the commission without proper investigation.
XRP lawsuit in final phase?
As per reports, the XRP lawsuit has taken a significant turn as Judge Analisa Torres has set a detailed schedule for the remedies discovery and briefing process. This comes after the dismissal of charges against individual Ripple executives, Brad Garlinghouse and Chris Larsen, the focus is now only on Ripple as the defendant.
The timeline beginning on February 12, 2024, will see a thorough examination of Ripple’s alleged offenses. However, the U.S. SEC is slated to present its brief on potential remedies for Section 5 violations by March 13, 2024. After which the defendants will respond to the SEC’s propositions by April 12. The SEC’s final rejoinder is due by April 29, 2024. This marks the culmination of the remedies phase of the litigation.
With both parties agreeing to a 90-day discovery period, Ripple is potentially facing a fine, given a prior ruling in July 2023 deeming Ripple’s institutional sales of XRP as an investment contract. The financial implications of this ruling could reach up to $770 million.