SEC Advocates for Injunctions in Ripple XRP Case’s Final Response
The ongoing legal battle between Ripple Labs and the United States Securities and Exchange Commission (SEC) has reached a crucial stage as the SEC filed its final reply in the lawsuit’s remedies stage.
In its recent response to the remedies brief, the SEC challenges Ripple’s claim that it acted without recklessness and that there should be no uncertainty about XRP’s legal status, despite the court’s previous rejection of this defense. The SEC also maintains its position on the likelihood of Ripple engaging in similar actions in the future.
The remedies brief highlights Ripple’s attempts to downplay its liability while emphasizing its cooperation with the SEC since the 2013 XRP initial coin offering. However, the SEC emphasizes that, according to the law, another violation is still possible even if Ripple has refrained from any violations since 2020.
The SEC argues that Ripple’s promises to change its behavior following the lawsuit do not justify the avoidance of injunctions. It asserts that Ripple fails to understand the court order and does not acknowledge the compliance ramifications.
In response to the SEC’s arguments in the remedies brief, Ripple’s chief legal officer, Stuart Alderoty, criticizes the SEC’s declining reputation. He points out that international financial regulators with robust crypto licensing frameworks may find the SEC’s efforts surprising, comparing them to issuing fishing licenses. Alderoty criticizes the commission for its inconsistent application of the law and expresses optimism about resolving the XRP lawsuit.
Ripple has previously opposed the SEC’s request for a $2 billion penalty, arguing that the proposed fines are excessive and punitive. The company has filed a motion disputing the SEC’s penalty demands and suggests a much lower penalty of $10 million instead. Ripple contends that the SEC’s proposed penalties do not align with the actual circumstances of the case and that its XRP sales were conducted transparently with knowledgeable institutional investors.
Ripple highlights its legal victories throughout the litigation and argues that the SEC’s penalty demands are inconsistent with the court’s findings. The company believes that the SEC’s request demonstrates ongoing intimidation against the crypto industry in the United States, especially considering the absence of allegations of recklessness or fraud in the case. Ripple proposes a lower penalty of $10 million, which it believes is more appropriate given the alleged violations and its conduct.
Analysts predict that the case will reach a final judgment around September, with the court deciding on penalties. Ripple expresses confidence in the judge’s fair approach to the final remedies phase.
