The U.S. Securities and Exchange Commission (SEC) has scheduled a critical meeting and confer session on November 9 in the ongoing Ripple Labs vs SEC case as seen in a letter sent to Judge Analisa Torres.
Ripple vs SEC: the November 9 Date
The importance of the November 9 meeting lies in its role in determining the next steps in this legal battle.
During this meeting and confer session, the SEC and Ripple Labs are poised to discuss the potential briefing schedule regarding the pending issue in the case. Specifically, the focus will be on what remedies are appropriate to address Ripple’s alleged Section 5 violations related to its institutional sales of XRP.
Section 5 of the Securities Act of 1933 requires that securities be registered with the SEC before it can be sold to the public, including, institutional investors. The question is whether XRP constitutes a security under this law and, if so, whether Ripple violated this regulation.
The outcome of this lawsuit could set a significant precedent for the treatment of digital assets within the United States.
Potential Remedies and Outlook for Ripple
The resolution being pursued by the SEC could potentially entail a substantial settlement. Such a settlement might involve Ripple paying a significant sum, which could run into the millions of dollars which may strain Ripple in addition to the legal bills it has incurred during the years-long legal battle.
While Ripple’s executives have indicated to the community that the recent developments do not necessarily imply an impending settlement, it remains an option that cannot be ruled out. Despite the ongoing legal battle and the SEC’s assertion of violations, Ripple has held on to two significant victories since the July 13 ruling.
Firstly, Judge Torres ruled that programmatic sales of XRP on secondary trading platforms do not constitute securities. This ruling has had a positive impact on XRP’s status as an asset, making it more appealing to the community, exchanges, and service providers in the crypto industry.
Secondly, the dismissal of charges against Brad Garlinghouse and Chris Larsen provides some relief for Ripple, as its leadership is no longer directly entangled in the legal proceedings.
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