The United States Securities and Exchange Commission (SEC) recent filing in their ongoing case with Ripple Labs could potentially change the playing field. The SEC has rejected Ripple’s claim that it acted without recklessness and that its XRP offering does not warrant any serious legal scrutiny, despite the court previously dismissing this “fair notice” defense.
The SEC is pulling no punches, asserting that despite Ripple’s assurances of changed conduct post-lawsuit, this doesn’t exempt them from potential injunctions. From the SEC’s point of view, Ripple is misinterpreting the order and avoiding its compliance implications. The commission maintains that, even if there has been no repeat offense since 2020, the possibility exists.
This recent response also disputes Ripple’s claims of sales conducted to accredited investors outside the U.S, implying these defenses were abandoned during summary judgment proceedings. The SEC remains firm in its stance that Ripple’s arguments don’t dismiss the need for injunctions to shield from future transgressions.
Ripple’s chief legal officer, Stuart Alderoty, has expressed discontentment with the SEC’s hardline approach. He’s optimistic about a resolution for the XRP lawsuit while criticizing the SEC for law application inconsistencies. Ripple has plans to introduce XRPL enterprise solutions in Japan via a strategic partnership with Tokyo-based HashKey DX. As the crypto world watches with bated breath, an optimistic judgment is expected around September.