YEREVAN (CoinChapter.com) – The legal battle between the US Securities and Exchange Commission (SEC) and Ripple continues, as investors hope the lawsuit will finally be resolved in April 2024. However, before a final ruling arrives, SEC and Ripple continue ‘bashing’ each other with motions. Here is the latest courtroom news and the possible effect it could have on the XRP price.
Did You know? On Dec 22, 2020, the SEC initiated a civil action against Ripple, Larsen, and Garlinghouse. The lawsuit claimed that Ripple should have registered the distribution of the digital asset XRP, dating back to 2013, as a security. The agency then withdrew allegations against both executives.
Ripple Filed a Sur-Reply
As mentioned, Ripple has filed a motion to file a Sur-Reply. A Sur-Reply is not a standard part of legal proceedings but can be requested to address new arguments or evidence presented in a reply by the opposing party. This is an additional response to the SEC’s Motion to Compel.
In detail, the SEC had earlier filed a Motion to Compel on Jan 11, 2024, which sought to require Ripple to provide specific documents. These documents include post-complaint contracts governing XRP institutional sales and financial statements for 2022-23. Ripple opposed this Motion to Compel on Jan 19.
By filing a Sur-Reply, Ripple aims to present further arguments against the SEC’s Motion to Compel. The intention is to persuade the court to deny the SEC’s request for additional documents.
If Judge Analisa Torres grants Ripple permission to file this Sur-Reply, it could potentially prolong the litigation process, as the court might need more time to consider these additional arguments. The judge might also call for a court session to hear oral arguments about these motions before making a ruling.
Meanwhile, the SEC vs. Ripple case is currently in its final stages, focusing on remedies-related discovery. Both parties are required to complete this phase by Feb 12 and then file remedy-related briefs, with the SEC’s brief due by March 13 and Ripple’s reply by April 12.
What About The XRP Price
Historically, these legal proceedings have had a significant impact on XRP price. A favorable final outcome for Ripple could potentially boost XRP’s market standing, while an unfavorable ruling might have the opposite effect.
However, as the case still continues, what is going on with XRP? The token traded at $0.5 on Jan 25, after a near-10% slide in a week.
While the bearish target for the coin stands at $0.2, XRP is likely to rebound in the short term. The token’s relative strength index (RSI) has hit the lower margin of the 30-70 range. In short, such a low RSI indicates a buying opportunity and some traders might oblige, picking up the XRP price in the process.
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