XRP Lawsuit: Ripple CLO Slams SEC’s Filing of the Remedies Reply, All Details
Earlier this week, the U.S. Securities and Exchange Commission (SEC) submitted its supporting remedies brief which is now available to the public. The SEC affirms its arguments on whether Ripple is likely to repeat its past actions, despite the fact that it hasn’t violated any rules since the XRP lawsuit filed back in 2020.
SEC’s Remedies Brief for the XRP Lawsuit
In the latest remedies brief reply, the US SEC has countered Ripple’s arguments, which state that the blockchain startup hasn’t acted recklessly and there shouldn’t be any “widespread uncertainty” regarding the legal status of XRP. But previously, the court dismissed this “fair notice” defense.
On the other hand, Ripple has tried to downplay its liability while highlighting its cooperation with the US SEC ever since the 2013 XRP ICO. In the latest remedies brief, the US SEC emphasized that, according to the law, even if Ripple had refrained from any violations since 2020, there is still a possibility of anticipating another violation.
The SEC made clear that the availability of injunctive relief is not affected by a defendant’s disclaimer of intent to violate the law in the future or by ceasing illegal actions. This position is rooted in the type of violations committed, suggesting that the potential for further violations remains even if the defendant promises not to commit them again or stops their unlawful activities.
Although Ripple has asserted making significant changes to avoid future violations, the SEC views them skeptically arguing that these changes are insufficient. The SEC wrote:
Ripple’s “assurances” that its unregistered sales “avoid the problems identified” in the Order are based on misreading or ignoring what the Order says. Ripple’s first “assurance” is not even an actual assurance—it is instead another attempt to relitigate summary judgment arguments.
Ripple CLO Slams the SEC
Soon after the SEC filing of the remedies brief, Ripple’s chief legal officer Stuary Alderoty said that the SEC continuously fails to apply the law faithfully. Interestingly he added that they were closer to putting the XRP lawsuit behind. Although the broader crypto community has been eagerly awaiting the final judgment in the Ripple vs SEC case, analysts believe that this won’t arrive until September.
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
Citing the SEC’s response in the remedies brief, Stuart Alderoty remarked that just when you believe the SEC’s reputation can’t decline further, financial regulators outside the U.S. who have diligently developed thorough crypto licensing frameworks should be aware that the SEC holds them in low regard, likening their efforts to issuing mere fishing licenses.
Amid all the developments, analysts continue to be hopeful of the XRP price resurgence, expecting it to surge all the way to $10.
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