The legal tussle between Ripple Labs and the US Securities and Exchange Commission (SEC) is coming to an end, as the US regulator has filed its final brief in the appeal process. Both parties maintain their positions, suggesting an imminent outcome in the months to come.
The SEC sticks to its positions
In its final brief filed during the appeal phase of the trial, the SEC refuted Ripple's argument that the startup acted in good faith and that there should be no ambiguity regarding the regulatory status of XRP .
The regulator has recalled that the court previously rejected Ripple’s “fair notice” defense. This defense states that a party cannot be held responsible for a violation if the competent authorities have not duly informed it of the applicable regulations.
The US securities watchdog also reaffirms its belief that Ripple could violate securities laws again in the future, despite the fact that the crypto startup has not committed any violations since the trial began in 2020. According to the brief appeal, Ripple tried to minimize its responsibility by highlighting its cooperation with the SEC since the Initial Coin Offering (ICO) of XRP in 2013.
However, the SEC emphasizes 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 negate the need for injunctions to prevent future violations.
Ripple counterattacks and goes international
In response to the SEC's position in the appeal brief, Ripple's Chief Legal Officer, Stuart Alderoty, said the regulator's credibility continues to erode. He pointed out that international financial regulators with robust regulatory frameworks for crypto may be unnerved by the SEC's approach.
Mr. Alderoty criticized the SEC's lack of consistency in enforcing the regulations. He said he was optimistic about the outcome of the XRP trial, while analysts expect a final judgment around September.
Meanwhile, Ripple is set to launch XRPL enterprise solutions in Japan through a strategic partnership with Tokyo-based consultancy HashKey DX, illustrating its determination to continue its development despite regulatory challenges.
As the legal standoff between Ripple and the SEC reaches its climax, the American regulator is sticking to its positions on the need for injunctions to prevent future violations. For its part, Ripple criticizes the SEC's approach and continues its expansion, particularly in Japan. The crypto community is feverishly awaiting the outcome of this trial, which could have major repercussions for the entire ecosystem.
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