Ripple Labs and the United States Securities and Exchange Commission (SEC) have made significant advancements in their legal dispute, as the SEC has filed its final response in the remedies stage of the lawsuit.
In its recent reply to the remedies brief, the SEC challenges Ripple’s claim that it acted without recklessness and argues that there should still be uncertainty regarding the legal status of XRP, despite the court previously rejecting Ripple’s defense of “fair notice.”
The SEC also maintains its position on whether Ripple is likely to engage in similar actions in the future, even though Ripple has not violated any rules since the lawsuit began in 2020.
According to the remedies brief, Ripple has tried to minimize its liability while emphasizing its cooperation with the SEC since the initial coin offering of XRP in 2013.
However, the SEC emphasizes that, according to the law, even if Ripple has refrained from violations since 2020, there is still a possibility of future breaches.
The SEC argues that Ripple’s assurances of changing its behavior after the lawsuit do not justify avoiding injunctions. The SEC believes that Ripple’s claims of following legal guidance and restructuring future XRP sales based on the court’s order are misleading. The SEC asserts that Ripple misinterprets the order and fails to acknowledge its implications for compliance.
The response refutes Ripple’s claims of conducting sales outside the U.S. and to accredited investors, as these defenses were abandoned during summary judgment.
Additionally, Ripple’s claims of making contract changes for on-demand liquidity sales are dismissed, as these contracts already lacked certain restrictions that were identified as violations.
Ultimately, the SEC argues that Ripple’s claims do not negate the need for injunctions to prevent future violations.
In response to the SEC’s reply in the remedies brief, Ripple’s chief legal officer, Stuart Alderoty, criticized the SEC for its inconsistent application of the law. He expressed optimism about resolving the XRP lawsuit. While the crypto community eagerly awaits the outcome of the case, analysts anticipate a final judgment around September.
Ripple plans to introduce its XRPL enterprise solutions to the Japanese market through a strategic partnership with Tokyo-based consulting firm HashKey DX.