News
SEC Files Final Memorandum in Ripple Case
Thu 09 May 2024 ▪ 4 minute read ▪ by Fenelon L.
The legal tussle between Ripple Labs and the US Securities and Exchange Commission (SEC) is nearing a conclusion as the US regulator has filed its final brief in the appeals proceedings. Both parties maintain their positions, suggesting an imminent result in the coming months.
The SEC stands its ground
In his final brief filed during appeal phase of the trialthe SEC rejected Ripple’s argument that the company had acted in good faith and that there should be no ambiguity regarding XRP’s regulatory status.
The regulator underlined that the court had previously rejected Ripple’s defense on the basis of “fair notice.” This defense suggests that a party cannot be held liable for a breach if the relevant authorities have not duly informed it of the regulatory standards in force.
The US securities regulator also reiterates its belief that Ripple may violate securities laws again in the future, despite the cryptocurrency company having not committed any violations since the lawsuit began in 2020. According to the appellate brief, Ripple attempted to downplay its liability by highlighting its liability. cooperation with the SEC since Initial Coin Offering (ICO) of XRP in 2013.
However, the SEC points out that, under the law, even if Ripple has refrained from any violations since 2020, the risk of recurrence remains. Ultimately, the SEC argues that Ripple’s claims do not eliminate the need for injunctions to prevent future transgressions.
Ripple fights back and focuses on the international scene
In response to the SEC’s position 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 strong regulatory frameworks for cryptocurrencies may be perplexed by the SEC’s approach.
Alderoty criticized the SEC’s lack of consistency in enforcing regulations. He expressed optimism about the outcome of the Cause XRPwhile analysts expect a definitive judgment around September.
Meanwhile, Ripple is preparing to launch its XRPL enterprise solutions in Japan through a strategic partnership with Tokyo-based consultancy HashKey DX, thus demonstrating its determination to continue its development despite regulatory challenges.
As the legal battle between Ripple and the SEC reaches its climax, the US regulator maintains its position on the need for injunctions to prevent future violations. On the other hand, Ripple denounces the SEC’s approach and continues its expansion, especially in Japan. The crypto community anxiously awaits the outcome of this process, which could have important repercussions for the entire ecosystem.
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Fenelon L.
Passionate about Bitcoin, I want to explore the meanings of blockchain and cryptocurrencies and participate in my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be relied upon as investment advice. Do your research before making any investment decisions.