Yello Paradisers! In the latest developments of the SEC vs. Ripple saga, the SEC has taken a bold step, seeking a massive penalty of $770 million from Ripple. John Deaton, a prominent figure in the crypto legal world, emphasizes that the SEC’s move goes beyond merely classifying XRP as a security.

📰Ripple’s Counter Strategy

Ripple is not taking this hefty penalty lightly. The company is actively devising strategies to minimize the proposed fine. Their focus is on excluding specific transactions and meticulously examining expenses to counteract the SEC’s claims.

📰Complexity of the Penalty Phase

The penalty phase is not a straightforward process. It mirrors the intricacies of reopening an entire case, complete with depositions, interrogatories, and a plethora of document requests. Deaton draws parallels with a previous SEC case against LBRY, where LBRY managed to significantly reduce its fines. This precedent might offer Ripple a glimmer of hope for a similar outcome.

📰Upcoming Key Date

January 17, 2024, stands out as a pivotal date in this legal drama. On this day, an oral argument concerning a motion related to Coinbase is scheduled. The outcome of this argument could influence the trajectory of the Ripple and SEC case. A win for Coinbase might push the SEC to reconsider its stance, while a loss could dampen hopes for a Ripple settlement.

📰Ambiguity Surrounding XRP

Deaton highlights the inconsistent narratives surrounding XRP’s classification by various federal entities. The discussions dating back to 2013 and agreements in 2015 have left XRP’s official status ambiguous, which might play to Ripple’s advantage.

📰What Lies Ahead

Deaton predicts that a final verdict from Judge Torres might not materialize until late summer. Meanwhile, Ripple could incur substantial legal fees, potentially reaching tens of millions. The financial stakes for Ripple in this battle are undeniably high.