SEC Argues for Injunctions in Final Response of Ripple XRP Case

cryptonews.com:

Ripple Labs and the United States Securities and Exchange Commission (SEC) have made significant progress in their ongoing legal battle as the SEC filed its final reply in the lawsuit’s remedies stage. 

In its  recent response  to the remedies brief, the SEC challenged Ripple’s assertion that the blockchain startup acted without recklessness and that there should be no “widespread uncertainty” about XRP’s legal status, despite the court previously rejecting this “fair notice” defense.

The SEC also maintains its stance on the likelihood of Ripple engaging in similar actions in the future.

The remedies brief states that Ripple has tried to minimize its liability while highlighting its cooperation with the SEC since the 2013 XRP initial coin offering. However, the SEC has stressed that, per the law, another breach remains possible even if Ripple has abstained from violations since 2020.

The SEC asserts that Ripple’s pledges to alter its conduct following the lawsuit do not warrant the avoidance of injunctions. It argues that Ripple doesn’t understand the court order and fails to acknowledge its ramifications for compliance. 

And just when you think the SEC can’t sink any lower, if you are a financial regulator outside the U.S. and have done the hard work of establishing comprehensive crypto licensing frameworks, know that the SEC has no respect for you and thinks you are handing out the equivalent of… pic.twitter.com/7qZQIkyrH4

— Stuart Alderoty (@s_alderoty) May 7, 2024

The SEC’s response challenges Ripple’s assertions regarding sales conducted outside the United States and to accredited investors. In response to the SEC’s arguments in the remedies brief, Ripple’s chief legal officer, Stuart Alderoty, spoke on the SEC’s