NOIDA (CoinChapter.com)—Magistrate Judge Sarah Netburn has set a new schedule, providing a Ripple lawsuit update. The new schedule relates to Ripple’s motion to dismiss the US Security and Exchange Commission’s latest expert submissions.
Ripple vs. SEC Lawsuit Update
Ripple argued that its On-Demand Liquidity (ODL) sales do not meet the traditional characteristics of an investment because transactions only hold XRP for seconds, not for investment purposes.
On April 22, Ripple filed a Motion to Strike, requesting the court to strike new expert materials that supported the SEC’s opening brief. Ripple argued that the SEC had included testimony from Andrea Fox without disclosing her identity and testimony during the discovery phase.
The regulatory body expects its motion would help support the SEC’s request for remedies and a final judgment. Judge Netburn has granted the SEC an extension until April 29, 2024, to file their rebuttal to Ripple’s motion. After the SEC’s submission, Ripple will have three business days to issue their response.
In a recent Ripple lawsuit update, Ripple acknowledged the court’s decision but contested the extensive remedies proposed by the SEC, which include broad injunctive relief, significant disgorgement of profits, and substantial civil penalties. Ripple argued that the factual basis of the case makes the remedies disproportionate.
Furthermore, Ripple argued against the injunction on the basis that it had adjusted its operations to ensure compliance with legal standards, thereby mitigating the likelihood of future violations.
ConsenSys Does An UNO Reverse, Sues SEC
Parallel to Ripple’s case, Ethereum developer ConsenSys has filed a lawsuit against the SEC, challenging the regulator’s authority over Ethereum and its associated services, such as MetaMask.
ConsenSys seeks a declaration that ETH is not a security, arguing against the SEC’s recent actions that suggest an expansion of its regulatory reach over cryptocurrencies. The lawsuit emphasizes the inconsistencies in the SEC’s approach, citing past statements that considered ETH a commodity.
The ConsenSys lawsuit could significantly impact the Ripple case and the broader cryptocurrency market. If ConsenSys successfully argues that ETH is not a security, it might set a legal precedent that could benefit Ripple by fostering a more favorable regulatory environment for cryptocurrencies.
Such outcomes could deter the SEC from asserting broad regulatory authority, potentially influencing its ongoing case against Ripple.
Both cases are pivotal, as market participants expect the lawsuits to set important precedents for the regulatory framework of cryptocurrencies in the United States.
The outcomes could either reinforce the SEC’s regulatory stance or encourage reevaluating how digital assets are classified and regulated, affecting the entire crypto industry.
