SEC files final response to Ripple XRP case

Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have made significant progress in their legal battle, with the SEC filing a final response in the lawsuit relief phase.

In its latest response to the bailout report, the SEC ruled that the blockchain startup had acted recklessly and that there should not be “widespread uncertainty” about the legal status of XRP (XRP), despite courts previously rejecting this “fair notice” of Ripple’s decision. The claim was disputed. defense.

The SEC also maintains its stance on the possibility of Ripple engaging in similar actions in the future, despite the fact that Ripple has not violated any rules since the XRP lawsuit began in 2020.

According to the relief outline, Ripple has sought to downplay its liability while emphasizing its cooperation with the SEC since the XRP initial coin offering in 2013.

However, the SEC emphasized that under the law, even if Ripple refrained from violating the law from 2020, another violation is still possible.

The SEC argues that Ripple’s assurances about a change in behavior after the lawsuit do not justify avoiding an injunction. According to the SEC, Ripple’s claims that it is following legal guidelines and reorganizing future XRP sales in accordance with the lawsuit’s orders are misleading. The SEC claims Ripple misinterpreted the order and did not accept its implications for compliance.

This response refutes Ripple’s claims about conducting sales outside the US and to accredited investors. Because these defenses were waived during summary judgment.

Additionally, Ripple’s claims of contract changes for on-demand liquidity sales are dismissed. This is because the contract does not already have the specific restrictions identified as being violated.

Related: Has XRP price bottomed against Bitcoin?

Ultimately, the SEC argues that Ripple’s claims do not negate the need for an injunction to prevent future violations.

In response to the SEC’s relief report, Stuart Alderoty, Ripple’s Chief Legal Officer, said: I left a comment. The SEC’s reputation continues to decline.

He emphasized that international financial regulators with strong cryptocurrency licensing frameworks may be surprised that the SEC views their efforts as similar to issuing fishing licenses.

Alderoty accused the SEC of not applying the law consistently. He expressed optimism about the resolution of the XRP lawsuit. The cryptocurrency community is eagerly awaiting the outcome of the case, but analysts expect a final ruling to be issued around September.

Ripple will introduce XRPL enterprise solutions to the Japanese market through a strategic partnership with HashKey DX, a Tokyo-based consulting firm.

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