Ripple Labs and the United States Securities and Exchange Commission (SEC) have made significant progress in their legal battle, with the SEC filing its final response in the remedies stage of the lawsuit.
In its recent response to the writ brief, the SEC questioned Ripple's insistence that the blockchain startup acted recklessly and that there should not be “widespread uncertainty” about the legal status of XRP (XRP) despite the court's rejection this “fair notice” in advance. defending.
The SEC also maintains its stance on whether Ripple is likely to engage in similar actions in the future, even though Ripple has not violated any rules since the XRP lawsuit began in 2020.
According to the relief brief, Ripple has sought to downplay its liability while also highlighting its cooperation with the SEC since the 2013 XRP initial coin offering.
However, the SEC emphasized that under the law, even if Ripple had refrained from violations since 2020, another violation is still possible.
The SEC maintains that Ripple's assurances about changing its behavior after the lawsuit do not justify avoiding injunctions. According to the SEC, Ripple's claims to follow legal guidance and restructure future XRP sales based on the lawsuit order are misleading. The SEC maintains that Ripple misinterprets the order and does not accept its implications for compliance.
The response refutes Ripple's claims about making sales outside the US and to accredited investors, as these defenses were abandoned during summary judgment.
Furthermore, Ripple's claims regarding changes to contracts for on-demand liquidity sales are dismissed, as these contracts already lacked certain restrictions identified as violations.
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Ultimately, the SEC maintains that Ripple's claims do not negate the need for injunctive relief to prevent future violations.
In response to the SEC's response in the settlement brief, Ripple's chief legal officer, Stuart Alderoty, commented that the reputation of the SEC continues to decline.
He highlighted that international financial regulators with strong crypto licensing frameworks might be surprised that the SEC views their efforts as similar to issuing fishing licenses.
Alderoty criticized the SEC for not applying the law consistently. He expressed optimism about the resolution of the XRP lawsuit. As the crypto community anxiously awaits the outcome of the case, analysts anticipate a final judgment around September.
Ripple is set to introduce XRPL enterprise solutions to the Japanese market through a strategic partnership with Tokyo-based consultancy HashKey DX.
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