Ripple vs. SEC case and Its Appeal strategies : An overview

As the Securities and Exchange Commission (SEC) submits its opposition brief to Ripple’s Motion to Strike expert testimony on Monday, April 29th, the court will once more hear the SEC vs. Ripple lawsuit. The legal dispute arose subsequent to Ripple’s December 2020 indictment by the SEC for allegedly selling unregistered securities in the form of XRP tokens.

In March, the SEC cited additional expert testimony in its opening brief to strengthen their case for a severe penalty and injunction against Ripple. The proposed injunction would prohibit institutional investors from purchasing XRP, which might jeopardize Ripple’s development into US markets and diminish demand for XRP.

Reportedly, the SEC’s expert witness focused on what transpired after they filed their complaint and analyzed financial statements. Ripple Labs Inc. filed a Motion to Strike, arguing that the complainant(s) hereinbefore listed, either individually or collectively, have disclosed their experts during pre-trial discovery under this Honorable Court regulation.

If they win this motion, any information about post-complaint activities, as well as the analysis of financial statements by plaintiffs, cannot be used to seek penalties against defendants; if not, we can expect more fireworks in the SEC vs Ripples case.

However, buyer appetite may be influenced more by what responses come in by May 6, following suit by sellers, as market players require something stronger than just positional arguments put forward in defense of attempts made earlier this month, which may give the impression that there is nothing at stake other than a few pennies.

The ultimate ruling date has not been set, although most traders expect it to happen before September 2024 for the reasons outlined above. However, regardless of the conclusion, many believe that no matter what the next ruling is on XRP Programmatic Sales, it will make no difference because everyone already knows where this is going.

Presently, the situation is being exacerbated by the Office of Inspector General’s ongoing investigation into possible financial conflicts within the SEC. Former SEC director William Hinman is a subject of interest in this investigation, which pertains directly to the SEC and Ripple dispute.

There has been speculation regarding whether Hinman’s association with Simpson Thacher law firm, in conjunction with his previous remarks regarding the insecurity of Ethereum, could indicate a bias against XRP, which was developed by Ripple Labs. However, recent court documents have definitively established this after revealing that he met with representatives of the aforementioned law firm despite warnings from the SEC Ethics Division. This further raises concerns regarding potential conflicts of interest.

As per the XRP price forecast, things are not looking good either, because as it stands now, XRP is trading below both the 50-day EMA and 200-day EMA lines. This technically signifies bearish momentum has taken over the market. If a breakout occurs, it will only be valid towards the 50-day EMA, while going below the $0.50 handle will suggest a further drop to $0.48.

The SEC Vs. Ripples case and regulatory actions are currently the focus of attention. Given their significance among investors who regularly watch such occurrences, they now have the ability to upset the whole cryptocurrency market, including its larger ecosystem.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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