May 6th will be the fate-deciding day for XRP institutional sales

The XRP community eagerly awaits the U.S. Securities and Exchange Commission's (SEC) reply brief, expected by May 6, following Ripple's opposition to the regulator's request for hefty penalties.

In July 2023, the court ruled that Ripple violated federal securities laws by selling XRP to institutions, prompting the SEC to seek approximately $2 billion in penalties. The proposed fines include a civil penalty of $876.3 million, disgorgement of $876.3 million, and prejudgment interest of $198.15 million.

Ripple's Defense: XRP Sales and Regulatory Compliance

Ripple countered the SEC's claims in its opposition brief, arguing that XRP sales post-complaint were to accredited investors and facilitated through ODL transactions, exempt from U.S. securities laws. These transactions were conducted by Ripple's Singapore branch, regulated by Singapore's central bank.

Ripple's Resumed Transactions: Testimony of Monica Long

Ripple's president, Monica Long, testified that these transactions resumed after the July 2023 judgment, as Ripple had ceased XRP sales since the SEC filed charges.

Upcoming Development

The SEC is expected to respond to Ripple's opposition by May 6, with market pundits speculating the regulator's persistence in seeking punitive disgorgement and an injunction against further XRP institutional sales.

Final Filings

The SEC's opposition to Ripple's motion to strike new expert materials, filed on April 29, is projected to be the final submission before Judge Analisa Torres decides on penalties for XRP institutional sales.

When writing the article, the price of XRP was $0.517.