Crypto: Ripple vs. SEC, the final clash before the long-awaited verdict!
The legal tug-of-war between Ripple Labs and the United States Securities and Exchange Commission (SEC) is nearing its conclusion as the American regulator filed its final brief in the appellate procedure. Both parties are holding firm to their positions, suggesting an imminent outcome in the coming months.
The SEC Stands Its Ground
In its final brief filed during the appellate phase of the trial, the SEC rejected Ripple’s argument that the company had acted in good faith and that there should be no ambiguity regarding the regulatory status of XRP.
The regulator emphasized that the court had previously dismissed Ripple’s defense based on “fair notice”. This defense suggests that a party cannot be held liable for a breach if the relevant authorities have not duly informed them of the regulatory standards in place.
The American securities watchdog also reiterates its belief that Ripple could again violate securities laws in the future, despite the crypto company not having committed any violations since the lawsuit began in 2020. According to the appellate brief, Ripple attempted to downplay its responsibility by highlighting its cooperation with the SEC since the Initial Coin Offering (ICO) of XRP in 2013.
However, the SEC points out that, according to the law, even if Ripple has refrained from any violations since 2020, the risk of recurrence remains. In the end, the SEC argues that Ripple’s claims do not eliminate the need for injunctions to prevent future transgressions.
Ripple Counterattacks and Focuses on the International Stage
In response to the SEC’s stance in the appellate brief, Ripple’s Chief Legal Officer, Stuart Alderoty, suggested that the regulator’s credibility continues to erode. He noted that international financial regulators with robust regulatory frameworks for crypto might be puzzled by the SEC’s approach.
Mr. Alderoty criticized the SEC’s lack of consistency in enforcing regulations. He expressed optimism regarding the outcome of the XRP lawsuit, while analysts predict a final judgment around the month of September.
In the meantime, Ripple is preparing to launch its XRPL enterprise solutions in Japan through a strategic partnership with the Tokyo-based consulting firm HashKey DX, thus illustrating its determination to continue its development despite regulatory challenges.
As the legal battle between Ripple and the SEC reaches its climax, the American regulator stands its ground on the need for injunctions to prevent future violations. On the other hand, Ripple denounces the SEC’s approach and continues its expansion, particularly in Japan. The crypto community eagerly awaits the epilogue of this trial, which could have major repercussions for the entire ecosystem.
