Crypto layers have predicted that resistance between the SEC (Securities and Exchange Commission) is going to be prolonged instead of winding up. SEC sued Ripple Labs for illegally raising $1.3 billion by selling unregistered securities. Ripple (XRP) is going through legal proceedings which not coming to any resolution.
Crypto Lawyer Comments on Growing Resistance Between SEC And Ripple Labs
Bill Morgan, the crypto lawyer whose expertise lies in his critical approach toward the crypt industry. He is of the view that this battle between SEC and Ripple (XRP) is at its peak and not going to wind up in the near future. Morgan states that this heat will take some time to cool down.
It will heat up not settle. The remedies phase in the #SEC v Ripple matter will be full on. I was refreshing my memory from the letters the parties sent to the court about the SEC’s intention to pursue the ultimately doomed motion for permission to file an interlocutory appeal./1— bill morgan (@Belisarius2020) October 25, 2023
SEC asked Ripple to submit the penalty of $1 billion which was revised and reduced to $770 million. Ripple plans to cut down the amount by not selling XRP to some commercial customers. According to Bill Morgan, Ripple wrote a letter to the courts highlighting key arguments for the upcoming case. One of the major and concerning issues was to distinguish between institutional sales and non-institutional ones.
The issue came into prominence because of the large amounts, especially after selling to On-Demand Liquidity (ODL) users for cross-border payments. SEC claimed that these are against the investment contracts since ODL users didn’t invest in XRP for profit. Morgan pointed out the SEC’s objections which are not related to the US jurisdiction related to institutional sales.
John Deaton’s Views Regarding SEC vs. Ripple Case
John E Deaton, another crypto lawyer affirmed Morgan’s statement and disclosed that no such deal called resolution has occurred between both parties.
As I said on @CryptoLawUS TV yesterday with @attorneyjeremy1 and Thien-Vu, I do not believe there has been a single serious conversation regarding settlement between @Ripple @bgarlinghouse @chrislarsensf and the @SECGov.— John E Deaton (@JohnEDeaton1) October 25, 2023
The SEC is pissed and embarrassed and wants $770M worth… https://t.co/kcXvsrPgaa
He also shared that, Ripple is looking for a reduction in penalty of $770 million by parting ODL transactions and a few other expenses. The next phase, with more investigations and legal battles, might last for months. John Deaton believes that the next decision might not come before late summer 2023, and appeals could stretch into 2024.
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