24/7 Cryptocurrency News

XRP SEC Lawsuit Update: Is Ripple Prepared For Torres Decision in Remedies Phase?

XRP SEC Lawsuit Update: Is Ripple preparing to pay high civil penalties & fines to the SEC per Judge Torres' final judgment in remedies case?
Published by
XRP SEC Lawsuit Update: Is Ripple Prepared For Torres Decision in Remedies Phase?

Highlights

  • Judge Torres' final judgment in the remedies phase likely to come in 2024 Q3.
  • The FIT21 crypto bill will have huge impact on Ripple lawsuit, as well Binance and Coinbase lawsuits.
  • The SEC can win permanent injunction against Ripple's XRP ODL transactions.
  • XRP price will continue to move in range-bound.

XRP SEC Lawsuit: The U.S. Securities and Exchange Commission (SEC) and Ripple Labs have presented their arguments in the remedies phase. The disputes related to sealing some details about Ripple’s financial results and post-complaint XRP sales to institutional investors.

The plaintiff, defendant, and third parties waiting for Judge Torres’ final judgment in the remedies phase, likely after the decision on the motion to seal. XRP lawsuit experts believe the judgment could come much earlier, most likely in 2024 Q3.

Advertisement

Ripple Vs SEC Lawsuit And Crypto Bill

The U.S. House of Representatives voted on the Financial Innovation and Technology for the 21st Century Act (FIT21), the first step towards a regulatory framework for trading and issuance of digital assets. It will provide clarity on the crypto market structure and define jurisdictions of the CFTC and SEC to regulate the crypto industry in the United States.

If the crypto bill becomes law, it will impact Coinbase, Binance, and other lawsuits. This crypto law could also have some impact on the XRP lawsuit as congresspeople affirmed that July 2023 Judge Torres’ summary judgment did have a significant impact on the design of the crypto bill.

Interestingly, a section in the crypto bill is similar to what Judge Torres ruled that XRP is not itself a security. The bill crypto excludes claims that an investment contract asset is a security. “A digital asset sold or transferred or intended to be sold or transferred pursuant to an investment contract is not and does not become a security as a result of being sold or otherwise transferred pursuant to that investment contract,” it reads.

In response to a buzz that XRP would not be considered decentralized, lawyer Bill Morgan said “The legislation is not retrospective.” The court has already found XRP in itself is not a security. Also, the SEC had made it clear that they are not going to challenge the judgment. “The legislation will not change that,” he added.

Also Read: XRP Lawyer Spotlights Judge Torres ‘Influence’ On FIT21

Advertisement

Ripple Ready for Judge Torres’ Judgment

As reported by CoinGape, the US SEC opposed Ripple’s motion to seal evidence from the public. The SEC claimed that Ripple’s redaction requests would hide public information key to the court’s decisions in the remedies phase and understanding of the public to penalties amount. The details include amount of Ripple’s current assets (relevant to penalty amount), amount of recent sales (injunctive relief and penalties), revenues & expenses (disgorgement), and the size of discounts to some institutional investors (investor harm).

Meanwhile, the SEC seeks $2 billion in total fines and a final judgment, while Ripple asserts the company is only liable to pay civil penalties of not exceeding $10 million. Notably, courts have never accepted the amount first requested by a party, and the actual amount would be much lower.

Bill Morgan believes Ripple will largely lose the motion to seal. He further added that the SEC clarified that none of the sales to institutions with discounts were ODL contracts, but the agency still seeks a permanent injunction to stop ODL sales.

The judge can grant a permanent injunction based on the current situation as the U.S. ODL transactions don’t use XRP, which might also work around the FIT21 if the law is passed. It’s worth noting that the FIT21 crypto bill gained significant favor in U.S. House voting. The bill mandates that digital assets sold under an investment contract do not necessarily classify the asset as a security just because it is transferred within a part of that contract.

Also Read: Bitcoin Price Hits $69,000; Will It Break $75,000 Soon?

Advertisement

Share
Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Expert Explains Pi Network–Sign Meeting, Says It Could Trigger Binance Listing

The Pi Network has been gaining attention in light of its recent partnership with blockchain…

September 27, 2025
  • 24/7 Cryptocurrency News

Is Trump Family, Mr. Beast Buying ASTER Token? Rumors Gain Strength

ASTER Token is once again gaining strength as rumors get ripe that big players like…

September 27, 2025
  • 24/7 Cryptocurrency News

Solana ETF Update: Grayscale, Fidelity, Others Files S-1 With Staking, Approval Expected in Two Weeks

Several major issuers, including Grayscale, Fidelity, and Bitwise, have filed new amendments to their Solana…

September 27, 2025
  • 24/7 Cryptocurrency News

Cyber Hornet Seeks SEC Nod for S&P 500 and XRP ETF

Cyber Hornet has filed with the U.S. Securities and Exchange Commission (SEC) to launch a…

September 27, 2025
  • 24/7 Cryptocurrency News

Cathie Wood’s Ark Invest Eyes Stake in Tether as USDT Issuer Targets $500B Valuation

Tether Holdings is preparing for one of its biggest funding rounds, with two global investors…

September 26, 2025
  • 24/7 Cryptocurrency News

Kraken Secures $500M at $15B Valuation, Eyes IPO in 2026

Kraken raised $500 million, increasing its valuation to $15 billion, setting the stage for a…

September 26, 2025