Ripple Labs and the United States Securities and Exchange Commission (SEC) have made significant progress in their ongoing legal battle, with the SEC filing its final reply in the lawsuit’s remedies stage. The case is expected to reach a final judgment around September, according to analysts.
In its recent response to the remedies brief, the SEC challenged Ripple’s assertion that the blockchain startup acted without recklessness and that there should be no “widespread uncertainty” about XRP’s legal status, despite the court previously rejecting this “fair notice” defense.
The SEC also maintains its stance on the likelihood of Ripple engaging in similar actions in the future.
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SEC Argues Against Ripple’s Cooperation Claims
The remedies brief states that Ripple has tried to minimize its liability while underscoring its cooperation with the SEC since the 2013 XRP initial coin offering. However, the SEC has stressed that, as per the law, even if Ripple has abstained from violations since 2020, another breach remains a possibility.
The SEC asserts that Ripple’s pledges to alter its conduct following the lawsuit do not warrant the avoidance of injunctions. It argues that Ripple doesn’t understand the court order and fails to acknowledge its ramifications for compliance. The SEC’s response challenges Ripple’s assertions regarding sales conducted outside the United States and to accredited investors.
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In response to the SEC’s arguments in the remedies brief, Ripple’s chief legal officer, Stuart Alderoty, spoke on the declining reputation of the SEC. He pointed out that international financial regulators with robust crypto licensing frameworks might find the SEC’s efforts surprising, likening them to issuing fishing licenses.
Alderoty criticized the commission for its inconsistent application of the law and expressed optimism about resolving the XRP lawsuit.
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As the company continues to uphold its stance and expand its global operations, the SEC remains sturdy in its stance. The outcome of this case could establish a precedent for cryptocurrency regulation not only in the United States but also worldwide.
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