The SEC’s lawsuit against Ripple Labs over XRP sales is ongoing. The court recently ruled that Ripple’s past sales of XRP were not illegal securities offerings, but the remedies phase of the case is still underway.
Since Monday was a US court holiday, there were no new developments in the case. However, the discovery period for remedies ends on Tuesday. Any last-minute filings submitted could affect the timeline for briefs on penalties, which are due in March/April. These briefs will determine the size of the fine that Ripple must pay for failing to register XRP as a security.
Ripple’s Chief Legal Officer reacted to a Wall Street Journal article about the unchecked power of US regulators, saying the courts are the last defense against the “lawless” administrative state. Recent SEC actions have faced scrutiny from courts, like in the Debt Box case where the SEC was ordered to explain why it shouldn’t be sanctioned for false statements.
Some US Senators recently threatened more scrutiny of SEC cases in reaction to the Debt Box case being dropped. Continued SEC infractions may lead Congress to investigate further. The ongoing Inspector General investigation into conflicts of interest allegations against a former SEC official could also threaten the SEC’s plans to appeal the recent XRP ruling.
If appeal plans end, it would likely boost XRP and the broader crypto market. The investigation involves claims that former SEC Director William Hinman improperly guided crypto regulations while having financial ties to Simpson Thacher law firm, which represents a group promoting Enterprise Ethereum.
