The United States Securities and Exchange Commission has filed its final response to the lawsuit with Ripple Labs. More so, the recent response highlighted how the SEC and the blockchain startup have made important progress in their legal tussle as the lawsuit approaches its remedies stage.
Furthermore, the regulator pointed out that the blockchain startup could face injunctions in the future if it stopped complying post-lawsuit. The SEC stated that the promises of the firm to redesign the future sales of XRP based on court order are deluding. Consequently, the regulator stated that Ripple is reading a different meaning to the court order, therefore failing to understand its implications for compliance.
Also, while responding to the remedies brief, the SEC objected to the claims of Ripple Labs that it is acting in compliance with the commission’s regulation, hence, there should be no uncertainty about the legal status of its token, XRP. Don’t forget that the regulatory agency is bringing this argument after the court has struck out the “fair notice” defense.
Despite the court directives, the SEC maintained its position that Ripple may engage in similar action later in the future. The regulator made these claims despite knowing that the blockchain startup has not violated any of its regulations since the emergence of the XRP lawsuit about four years ago.
How Ripple Responded to the Claims of the SEC
Meanwhile, on the flip side, Ripple, according to the remedies, briefly deemphasized its shortcomings, illuminating its compliance with the SEC since it organized the ICO of XRP in 2013. In reaction, the SEC maintained that according to the law, there is a possibility that Ripple Labs may breach some of its regulations despite how it has abstained from violating them since 2020.
It is worth mentioning that the chief legal officer of Ripple, Stuart Alderoty responded to the SEC’s claims in the remedies brief. The chief legal officer stated that the reputation of the regulatory body is gradually declining due to its arguments in the remedies brief.
He explained that the application of the SEC’s oversight functions is short of international standards. Likewise, Stuart Alderoty bemoaned how the SEC has failed to apply the law at all times. However, he registered faith in the settlement of the SEC and Ripple lawsuit.
As the drama continues to unfold, the crypto community is anticipating the outcome of the lawsuit. Similarly, some experts and analysts have established that the final judgment is likely to surface in September.