- The SEC has filed its final response in the Ripple XRP lawsuit, challenging Ripple’s assertions and maintaining concerns about future compliance.
- Ripple’s chief legal officer criticizes the SEC’s approach while expressing optimism about resolving the case, as analysts anticipate a final judgment around September.
Ripple Labs and the United States Securities and Exchange Commission (SEC) have reached a pivotal moment in their legal feud, as the SEC has filed its final response in the ongoing case regarding Ripple’s XRP cryptocurrency. This response comes in the wake of Ripple’s remedies brief, where the blockchain startup challenged the SEC’s allegations and sought clarity on the legal status of XRP.
In its latest filing, the SEC has pushed back against Ripple’s arguments, particularly disputing Ripple’s claim that it acted without recklessness and downplaying the uncertainty surrounding XRP’s legal standing. Despite Ripple’s assertions that it has not violated any rules since the lawsuit began in 2020, the SEC maintains concerns about Ripple’s future conduct in the absence of legal injunctions.
The SEC has underscored the importance of regulatory compliance, arguing that Ripple’s assurances of changing its behavior post-lawsuit are insufficient grounds to avoid injunctions. According to the SEC, Ripple’s purported efforts to restructure XRP sales and comply with legal guidance are misleading, as they fail to address the underlying concerns raised by the lawsuit.
Furthermore, the SEC has refuted Ripple’s defenses related to conducting sales outside the U.S. and to accredited investors, stating that these arguments were abandoned during earlier stages of the legal proceedings. Similarly, Ripple’s claims regarding changes to on-demand liquidity sales contracts have been dismissed by the SEC, as these contracts were found to lack certain necessary restrictions.
Ripple’s chief legal officer, Stuart Alderoty, has responded to the SEC’s filing by criticizing the regulator’s approach and expressing optimism about resolving the lawsuit. He has highlighted Ripple’s cooperation with international regulators and its plans to introduce XRPL enterprise solutions in the Japanese market as signs of the company’s commitment to compliance and innovation.
As the legal battle between Ripple and the SEC unfolds, the crypto community eagerly awaits a final judgment, which analysts predict could come around September. In the meantime, Ripple continues to forge ahead with its business initiatives, including a strategic partnership with Tokyo-based consulting firm HashKey DX to introduce XRPL solutions in Japan.
The outcome of the Ripple XRP case will undoubtedly have significant implications for the cryptocurrency industry at large, shaping regulatory frameworks and market dynamics for years to come. As stakeholders closely monitor developments in the courtroom, the resolution of this high-profile dispute remains uncertain, yet crucial for the future of Ripple Labs and the broader crypto ecosystem