The long-running legal dispute is entering its final lap
Ripple Labs and the US Securities and Exchange Commission (SEC) recently moved forward in their ongoing legal dispute. The SEC has recently filed its final reply in the remedy stage, marking a critical milestone in the case’s progression.
The lawsuit centers on the SEC’s allegations that Ripple Labs engaged in the illegal sale of unregistered securities through its XRP cryptocurrency. Ripple Labs has denied the allegations, arguing that XRP is not a security but a digital asset.
The SEC challenged Ripple’s claim that it operated cautiously and that there’s no “widespread uncertainty” about XRP’s legality even after the court denied its “fair notice” defense.
The SEC’s position on Ripple’s potential future actions remains unchanged despite the absence of any rule violations by Ripple since the XRP lawsuit began in 2020. As stated in the remedies brief, Ripple has attempted to minimize its responsibility while emphasizing cooperation with the regulator since XRP was introduced in 2013.
The SEC also stressed that, according to law, another violation is still possible despite Ripple’s refraining from infractions since 2020. The agency also maintains that Ripple’s arguments do not eliminate the necessity for injunctions to prevent future breaches.
Ripple continues its expansion into international markets, recently collaborating with Tokyo consulting firm HashKey DX to introduce XRPL enterprise solutions to Japan. The company’s chief legal officer, Stuart Alderoty, responded to the SEC’s remedies brief reply, stating that the regulatory agency’s reputation is still on the decline. Alderoty expressed optimism about resolving the case but also criticized the SEC’s inconsistent application of the law.
A final judgment in the case is expected around September.
