A lawyer representing thousands of crypto enthusiasts in the case brought against Ripple by the Securities and Exchange Commission (SEC) suggested a verdict could be delivered by May 6, 2023.
In an April 5 interview with Thinking Crypto, John Deaton, a cryptocurrency lawyer and XRP supporter, said that Judge Analisa Torres, who is presiding over the SEC’s case against Ripple in the Southern District of New York, usually issues her decisions within a couple of months of her Daubert/Experts’ decision, which was made on March 31.
Although Judge Torres has no deadline to rule on the summary judgment motions filed by both parties, if she stays true to her habits, she could deliver her ruling in the first week of May.
Deaton, who represents thousands of XRP holders as an amicus curia, that is, a friend of the court, in the case, also added that Judge Torres could as quickly delay her ruling beyond June 1.
XRP ruling could have significant ramifications for crypto
Legal experts believe the outcome of the case could have significant implications for the future of XRP and the entire crypto industry in the U.S. and beyond. According to them, a win for Ripple could validate its vision of XRP as a global bridge currency and a catalyst for innovation and financial inclusion.
On the other hand, the experts think a win for the SEC could result in hefty fines, disgorgement, injunctions, and registration requirements for Ripple and XRP and set a precedent for other crypto projects that may face similar enforcement actions.
The SEC’s case against Ripple is a legal dispute that involves allegations of unregistered securities offerings. The regulator claims that Ripple and its executives sold XRP to investors without complying with the federal securities laws that require registration or an exemption.
The agency claims that XRP is not a currency but an investment contract that gives its holders a stake in Ripple’s future profits and success. It also alleges that Ripple misled investors about the status and utility of XRP and manipulated the market by selectively disclosing information and paying incentives to third parties.
Ripple denies these allegations and contends that XRP is not a security but a decentralized cryptocurrency with utility and value beyond Ripple’s control. The crypto firm claims the SEC’s lawsuit is based on a flawed and outdated interpretation of the law and harms the crypto industry’s innovation and development.
Furthermore, the company also asserts that it has been transparent and cooperative with regulators for years and that the SEC’s lawsuit is an arbitrary and unprecedented overreach that violates due process and fair notice principles.