The United States Securities and Exchange Commission (SEC) has taken another step in its lawsuit against Ripple Labs. This latest filing marks an important stage in the lawsuit, as the SEC continues to build its case against the blockchain company. Since 2020, the SEC has been questioning Ripple’s claim that it acted without recklessness in the sale and distribution of XRP tokens.
While Ripple maintains that it was not reckless, the SEC argues that there is a potential for future violations based on the company’s past behavior. The regulator is seeking legal orders to prevent Ripple from committing similar violations in the future.
Ripple has proposed changes to its operations in response to the lawsuit, but the SEC disputes these changes, claiming they do not meet the necessary legal requirements. The SEC also criticizes Ripple for continuing to sell XRP outside the US and to accredited investors, despite these defenses being dismissed during the summary judgment stage of the lawsuit. The regulator also rejects the changes Ripple made to its on-demand liquidity sales contracts, arguing that they still contain breaches.
In response to the SEC’s tactics, Ripple’s General Counsel, Stuart Alderoty, has openly criticized the regulator and believes it will damage the SEC’s reputation. Despite the challenging legal situation, Alderoty remains hopeful that the lawsuit will be resolved in Ripple’s favor.
The cryptocurrency community is eagerly awaiting the outcome of this case, with a final judgment expected in September. Despite the legal troubles in the US, Ripple continues to pursue business activities and has recently formed a strategic alliance with Tokyo consulting company HashKey DX. This partnership aims to bring Ripple’s XRPL enterprise solutions to the Japanese market, highlighting Ripple’s determination to establish a global presence.
As the legal battle between the SEC and Ripple reaches its final stages, the implications for the entire cryptocurrency market are significant. This case has the potential to set standards and practices for recognizing the value of digital assets in the United States, impacting many participants in the fintech and blockchain sectors.
