SEC Delivers Decisive Response in Ripple XRP Case, Signals Crucial Moment

In the current cryptocurrency landscape, the legal battle between Ripple Labs and the United States Securities and Exchange Commission (SEC) reaches a new height with the SEC delivering its latest response in the remedial phase of the case against XRP. This step marks a crucial development after years of litigation.

The SEC, in its latest statement, vigorously refuted Ripple’s defense that claimed the absence of “generalized uncertainty” about the legal status of XRP, even after court decisions unfavorable to this “fair warning” thesis. The commission argues that regardless of Ripple’s past compliance since the process began in 2020, there is no guarantee that future violations will be avoided.

According to recently presented documents, Ripple has attempted to lessen its responsibility by highlighting cooperation with the SEC since the initial issuance of XRP in 2013. However, the SEC maintains that the possibilities of future infringements remain and ensures that the changes in behavior proclaimed by the Ripple are not enough to prevent injunctions.

More of the same from the SEC — failing to faithfully apply the law and trying to pull the wool over the Judge’s eyes. The good news is that we are closer than ever to putting this lawsuit behind us, though unfortunately, many are just starting the journey. We trust the Court… https://t.co/JGhxAtOuk1

— Stuart Alderoty (@s_alderoty) May 7, 2024

The SEC also criticized Ripple’s statements regarding changes to XRP sales, especially regarding contractual changes and sales to investors outside the United States and accredited investors, pointing out that such defenses were insufficient during the summary judgment hearings.

Ripple, facing these accusations, did not fail to express its position through its legal director, Stuart Alderoty, who emphasized the decline in the SEC’s reputation, comparing its regulatory actions to the issuance of fishing licenses, a metaphor that criticizes the inconsistency in the application of laws by the SEC. Alderoty expresses cautious optimism about the future of the XRP case, reinforcing the crypto community’s expectation for the expected outcome in September.

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