The lawyer presented his observations on the subject upcoming court verdict from the US Securities and Exchange Commission (SEC) in connection with a lawsuit against Ripple. as legal battle is finally coming to an end, a lawyer has outlined how potential rulings could impact Ripple’s reputation and digital asset operations in the United States (US).
Upcoming SEC Rulings in Ripple Case
Fred Rispoli, founder of HODL Law, recently appeared on YouTube video hosted on the Thinking Crypto podcast by Tony Edward. When asked if judgment against Ripple would entail penalties for institutional sales of XRP, Rispoli confirmed that Ripple would in fact be required to pay a certain amount of fine.
He revealed that the punishment would not be as severe as Initial SEC penalty of $2 billion for selling XRP to institutional investors. However, he also admitted that a $2 billion fine would be harsh and harmful to the crypto company, but not fatal to the company.
Rispoli predicted that SEC Ruling will most likely be less than $25 million and will incur a monetary penalty dischargeHe added that the most crucial aspect of the future ruling will be Ripple’s injunction and potential restrictions imposed on the company. According to the lawyer, the terms of the injunction will be of great importance for Ripple’s future operations and financial interests.
The HODL law founder also revealed that the SEC wants a “broad injunction” against Ripple. He stressed that the regulator wrote in its proposed order last year to limit its ability to engage in any activities that could remotely be considered unregistered securities transactions.
However, Rispoli revealed that the judge would likely avoid any fresh cases that the SEC files that are not subject to litigation. He emphasized that when a government entity, such as the U.S. SEC, is involved in a lawsuit, it typically has 60 days to file a notice of appeal instead of the standard 30 days. Once Ripple’s ruling is confirmed, the SEC will have exactly 60 days to decide whether to appeal.
Future implications of the legal battle
Speaking about the outcome of the legal proceedings between Ripple and the SEC, Rispoli revealed that Ripple may be forced to move its operations outside the US if the result of the lawsuit is unfavorable. He stressed that this would be a huge blow to the US economy, given the company’s status as a leading cryptocurrency payments company and its future goals to become a global alternative to SWIFT network.
He also revealed that Ripple’s plans for an initial public offering (IPO) could be hampered or delayed by the SEC. Additionally, corporate ones stablecoin launch in the future can be seen as a hedge given SEC’s stance on cryptocurrencies.
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