Ripple enters final phase of legal battle, lawyer reveals key information, Ripple may need to move its operations out of the US

Attorney Fred Rispoli, founder of HODL Law, has shared insights into the expected court decision in the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Ripple. As the legal battle draws to a close, the potential decision could have a significant impact on Ripple’s reputation and digital asset operations in the United States (US).

SEC’s Upcoming Ruling on Ripple

HODL Law founder Fred Rispoli recently appeared on the Thinking Crypto podcast hosted by Tony Edward. Rispoli discussed the potential penalties that Ripple could face for institutional sales of XRP. He confirmed that Ripple will be required to pay a fine, although it will not reach the $2 billion that the SEC originally requested. This smaller fine is expected to be less than $25 million, which will still be challenging for Ripple but will not be catastrophic to the company.

Rispoli believes that the most critical aspects of the upcoming judgment will be the injunction provisions and potential restrictions on Ripple’s operations. He mentioned that the SEC seeks a “broad injunction” to restrict Ripple’s activities, especially those that could be considered unregistered securities transactions.

Rispoli also noted that the judge may avoid filing a new case without litigation. If the verdict is confirmed, the SEC will have 60 days to decide whether to appeal, rather than the usual 30 days for non-governmental entities.

SEC Replies to Ripple's Letter Regarding TerraForm Labs Consent Judgment! $102.6 Million Settlement Requested

On June 13, Ripple's legal team cited the settlement between the SEC and Terraform Labs as a precedent for determining an "appropriate" penalty. Ripple's lawyers claimed that the SEC's request for a $2 billion fine was unreasonable. They emphasized that the $4.5 billion settlement in the Terraform case was a more appropriate benchmark.

They emphasized that the $4.5 billion settlement in the Terraform case was a more appropriate benchmark.

Ripple filed its application with the SDNY on June 13. Source: PACER

The U.S. Securities and Exchange Commission (SEC) then responded to Ripple's letter regarding the TerraForm Labs consent judgment.

SEC’s response to Ripple’s letter

The SEC asked Ripple to deliver a $102.6 million settlement.

Rispoli highlights the impact of the legal battle, Ripple may need to move its operations out of the United States

Rispoli highlighted the potential impact on Ripple's future. If the verdict proves unfavorable, Ripple may need to move its operations out of the United States. Given Ripple's prominence in the crypto payments space and its ambitions to challenge the SWIFT network, such a move could have a significant impact on the U.S. economy.

In addition, Ripple's initial public offering (IPO) plans and future stablecoin launches may face delays or obstacles due to the SEC's stance on cryptocurrencies.