In the latest twist in the XRP lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC), the SEC has filed its response letter on possible remedies sealed. This marks significant progress in the legal dispute. The documents filed deal with the possible penalties Ripple could face.

Condition: the SEC must prove by its allegations that Ripple engaged in unauthorized securities trading (with the cryptocurrency XRP).

#XRPCommunity #SECGov v. #Ripple #XRP The @SECGov has filed, under seal, its remedies reply brief & supporting exhibits. These documents are not yet public. Public, redacted versions will be filed by Wednesday, May 8, 2024. Other sealing-related filings will follow. See below. pic.twitter.com/ENnkh6oW9H
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) May 6, 2024

Former U.S. federal prosecutor James K. Filan shared the update on the lawsuit against Ripple on Twitter. He explained: "These documents are not yet public. Publicly redacted versions will be filed by Wednesday, May 8, 2024."

The crypto community is now eagerly awaiting the documents. These could shed light on the SEC's arguments and clarify the potential impact on Ripple. The stakes are high: the SEC is demanding fines totaling about US$2 billion. Ripple's counter-proposal is a maximum fine of only US$10 million.

#XRPCommunity #SECGov v. #Ripple #XRP @Ripple has filed its Opposition to the @SECGov's Motion for Remedies and Entry of Final Judgment.https://t.co/Q0OOay1jdt
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) April 23, 2024

Even in the event of a favorable outcome for Ripple, it is not certain that the XRP price will be positively affected in the long run. XRP is currently trading at about 50 cents, which puts it lower than it was in the summer of 2023. 84 percent below its all-time high of €2.82.

Ripple won a partial victory at the time because U.S. Judge Torres ruled that XRP was not a security (at the time retail investors trade XRP). At the same time, however, XRP should be considered a security when sold to institutional investors.