The court ordered the SEC and Ripple to complete remedies-related discovery by February 12, 2024. Upon completion of the discovery process, the SEC m
The court ordered the SEC and Ripple to complete remedies-related discovery by February 12, 2024. Upon completion of the discovery process, the SEC must file its remedies-related brief by March 13, 2024, and Ripple on or before April 12, 2024.
Remedies-related discovery will furnish the parties with additional information to reach a settlement. Alternatively, the court would deliver a penalty judgment based on presented arguments. The SEC will want to send a message. However, case law may favor Ripple.
In Morrison v NAB, the Supreme Court ruled the SEC only has jurisdiction over US-based sales. XRP sales to institutional investors totaled $770 million.
In discovery, Ripple will demonstrate the proceeds from XRP sales to US institutional investors. Ripple will also detail related expenses to derive net profits from the sale of XRP to US institutional investors.
The final number is a focal point for investors. However, an SEC appeal of the Programmatic Sales ruling could have more influence.
US Government Scrutiny Impacts Bullish Sentiment
US lawmakers and US regulatory scrutiny of the digital asset space remain headwinds for the crypto market.
On Wednesday, the US Deputy Treasury Secretary Wally Adeyemo made the news. Adeyemo sent a warning to crypto firms involved in illicit activities, saying,
“My message is simple: We will find you and hold you accountable.”
Referencing the US DoJ and CFTC case against Binance, the Deputy Treasury Secretary said,
“Binance allowed itself to be used by the perpetrators of child sexual abuse, illegal narcotics trafficking, and terrorism, across more than 100,000 transactions. Groups like Hama, Al Qaeda, and ISIS conducted these transactions.”
The message was loud and clear. Increasing scrutiny may not directly affect Ripple or XRP. However, XRP remains sensitive to regulatory scrutiny as the SEC v Ripple case progresses. Increased scrutiny and anti-crypto sentiment could incentivize the SEC to appeal the Programmatic Sales ruling.
XRP Price Action
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