In the legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC), anticipation has reached fever pitch as the community eagerly awaits a ruling. Already 931 days ago, the SEC filed its lawsuit against Ripple Labs and its executives Brad Garlinghouse and Chris Larsen. The last publicly visible action in the litigation occurred on June 13, when the Hinman documents were released. Since then there has been silence.
Why A Ruling Can Take Even Longer
Attorney John E Deaton, representing 75,000 XRP holders as amicus curiae, recently took to Twitter to shed light on the prolonged timeline and dispel speculations surrounding the case. Deaton’s enlightening Twitter thread reveals an interesting aspect of the Ripple vs. SEC case: the surprisingly long duration it has taken for a ruling to be made.
The attorney points out that the reply briefs for summary judgment were filed in December 2022, placing Judge Torres’ decision at an astounding seven months of deliberation. But before jumping to conclusions, Deaton emphasizes the importance of considering other cases before Judge Torres that have encountered similar delays.
“Ripple isn’t the only one waiting, however. In the Thor Equities case, also before Judge Torres, the Reply Briefs were also filed in December. Judge Torres hasn’t yet ruled,” Deaton notes, highlighting that the Ripple lawsuit is not an isolated incident.
To provide further context, Deaton draws attention to the N.Y. District Carpenter’s fund case, where Judge Torres’ summary judgment ruling took over eight long months from the filing of the reply briefs. He further cites the Quiller Inc. vs. U.S.A. case, which also took a whopping seven months for Judge Torres’ decision. Additionally, there are several other cases, such as the Fitzgerald case, which took a significant six months for Judge Torres to render a ruling.
While the extended waiting period has sparked frustration and speculation within the crypto community, Deaton urges caution before “donning the tinfoil hats” of conspiracy theories. He assures the XRP army that there is a larger picture at play, emphasizing that Judge Torres is well aware of the weight and significance of her decision.
The magnitude of this case, combined with its potential impact on the crypto landscape, necessitates careful consideration and thorough examination. Moreover, it’s important to remember that legal proceedings can be intricate, especially when the stakes are high and the ramifications have far-reaching consequences. The Ripple vs. SEC case is no exception, as Deaton concluded:
In short, although I, and others, believed that we would see a ruling before now, there are other cases and examples that have taken an equal amount of time. Judge Torres is likely aware of the magnitude of her decision.
SEC To Freeze Escrow Accounts By Ripple?
In a recent Twitter response, Deaton provided further insights into the Ripple vs. SEC case, shedding light on the status of Ripple’s XRP escrow accounts and the potential penalties the company may face. Contrary to suggestions of permanently locking Ripple’s escrow, Deaton clarified that the SEC’s primary objective is to secure a significant financial penalty of $1.3 billion and a permanent injunction.
The attorney also highlighted the possibility of a penalty phase if Ripple loses, which could involve fines, disgorgement of profits, and an injunction against future violations. But the fate of Ripple’s escrow accounts, according to Deaton, is likely to remain intact unless a settlement is reached after Judge Torres’ ruling.
At press time, the XRP price was at $0.4770.
Featured image from Fox Business, chart from TradingView.com
