Law veteran Marc Fagel, renowned for his extensive experience in securities litigation, recently provided crucial insights into the ongoing legal battle between the US Securities and Exchange Commission (SEC) and Ripple, as well as developments regarding regulatory challenges of Robinhood.
In the latest updates, Fagel shed light on the SEC’s long-awaited response brief in SEC v. Ripple, expected today. Ripple, in its opposition brief, disputed the SEC’s request for a hefty $2 billion fine, arguing for a significantly lower penalty.
Fagel pointed out that while tomorrow marks the deadline for the SEC’s response, the court could take a month or two to reach a decision, rendering premature speculation regarding the verdict unnecessary.
They responded and the parties await a decision on the strike motion. Tomorrow is the due date for the SEC’s response on remedies. But it will take time for the court to rule, maybe a month or two, and that’s why the post above makes no sense.
— Marc Fagel (@Marc_Fagel) May 5, 2024
Regarding the possibility of appeal, Fagel reiterated that regardless of the court’s decision on sanctions, the SEC retains the ability to appeal certain aspects of the case, highlighting the agency’s previous penchant for appeals.
SEC vs. Robinhood
Meanwhile, Robinhood once again finds itself in the regulatory spotlight, as it has received a Wells Notice from the SEC, accompanied by staff recommendations for a potential lawsuit. This development follows a subpoena issued to Robinhood, focusing on various aspects of its cryptocurrency operations.
Fagel clarified the meaning of the Wells Notice, dispelling misconceptions about its nature. Contrary to popular belief, he explained that this signifies the conclusion of the SEC’s investigation and precedes the recommendation for enforcement action, a process that typically lasts several months and often culminates in federal court proceedings.
This means that the SEC’s enforcement division has completed an investigation and will recommend that the 5 commissioners authorize you to file a lawsuit. It usually takes a few months for the process to unfold.
— Marc Fagel (@Marc_Fagel) May 6, 2024
As cryptocurrency enthusiasts eagerly await further developments, all eyes are on the courts and regulatory decisions that will shape the future of the entire market.
