The ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has reached a crucial stage known as the remedies phase. Recently, both parties presented their arguments concerning the sealing of certain financial details and the sale of XRP after the SEC's complaint to institutional investors.

Judge Torres is expected to deliver a final judgment after addressing the motion to seal. Experts predict a decision by the third quarter of 2024. Meanwhile, Ripple and SEC await the judge's ruling, which could have significant implications for the outcome of the lawsuit.

In parallel, the U.S. House of Representatives has advanced the Financial Innovation and Technology for the 21st Century Act (FIT21), aimed at establishing a regulatory framework for digital assets. This legislation could potentially influence the regulatory landscape for cryptocurrencies like XRP and impact ongoing lawsuits involving major platforms such as Coinbase and Binance.

One noteworthy aspect of FIT21 aligns with Judge Torres' previous ruling that XRP itself is not classified as a security. This legislative provision excludes digital assets from being deemed securities when sold under an investment contract, echoing the court's findings.

Looking ahead, legal observers anticipate Ripple may not succeed in its motion to seal certain evidence, which the SEC argues is crucial for transparency in determining penalties. The SEC seeks substantial fines amounting to $2 billion, contrasting sharply with Ripple's contention that any penalties should not exceed $10 million.

Amidst these developments, the judge's decision on potential injunctions could also shape the future of Ripple's operations, particularly concerning the use of XRP in ODL transactions. As the legal landscape evolves, Ripple remains poised for the forthcoming judicial ruling that will determine the next chapter in this high-stakes legal saga.