Ripple CTO David Schwartz recently stirred excitement within the XRP community following his prediction regarding the potential resolution of the SEC v. Ripple lawsuit.
In a recent interview with Tony Edward of Thinking Crypto, Schwartz speculated that Ripple’s lawsuit with the SEC could be resolved this year.
“There is some reasonable chance that the lawsuit could be resolved in 2024,” he remarked.
Potential Factor Behind the Prediction
Although Schwartz did not shed light on why he believes the lawsuit could be resolved this year, several factors could have influenced his reasoning.
In a case like SEC v. Ripple, the remedies litigation is the last phase of the case at the district court level.
The court issued its summary judgment in July 2023, with the case currently in the remedies stage. As per the court schedule, the last motion with respect to remedies is expected to be filed by April 29, 2024. On this date, the SEC shall file any reply to Ripple’s opposition to its remedies-related motions.
After the filing, the court will determine the appropriate penalty for Ripple’s securities law violation. Multiple legal experts following the lawsuit believe Judge Analisa Torres will issue the remedies ruling in the early summer of 2024.
SEC V. Ripple Case Could Linger Beyond 2024
Even though legal experts and Ripple CTO forecast that the lawsuit could be resolved in 2024, the case may linger beyond this year.
This could be the scenario if any aggrieved parties appeal to the Second Circuit.
The appeal could focus on the judge’s summary judgment or the decision relating to the remedies. Recall that the SEC previously attempted to file an immediate appeal regarding the ruling on Ripple’s programmatic sales and other distributions, which the court found to be non-securities.
However, the court denied the SEC’s request, ordering the commission to wait until all pending issues are resolved.
If the remedies litigation ends in the summer of 2024 as predicted, the SEC could resume its quest to overturn Judge Torres’ decisions on Ripple’s programmatic sales and other distributions. An appeal implies that the lawsuit could be resolved by 2025 – 2026.
Ripple has already revealed plans to go to the Supreme Court to get a satisfactory ruling. So far, things appear to be going in the company’s way, as it has recorded more wins in the lawsuit than the SEC.
It forced the SEC to surrender the drafts of William Hinman’s controversial speech on cryptocurrencies. The majority of transactions that the SEC alleges to be securities were ruled as non-investment contracts.
Furthermore, the SEC also dropped its aiding and abetting charges against Ripple execs, Brad Garlinghouse and Chris Larsen.
