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The legal tug of war between Ripple Labs and the US Securities and Exchange Commission (SEC) is nearing an end, with the US regulator filing final briefs in the appeals process. Both parties are holding firm on their positions, suggesting an outcome is imminent in the coming months.
SEC stands its ground
In a final brief filed during the appellate stage of the case, the SEC rejected Ripple's arguments that it acted in good faith and that there should be no ambiguity regarding XRP's regulatory status.
The regulator emphasized that courts had previously rejected Ripple's defense on the basis of “fair notice.” This defense suggests that a party cannot be held liable for a breach if the relevant authority fails to give adequate notice of a regulatory standard.
The US securities watchdog has also reiterated its belief that Ripple may violate securities laws again in the future, even though the company has not committed any violations since the case began in 2020. According to the appeal brief, Ripple tried to downplay its own responsibilities by emphasizing Ripple's responsibility. We have been working with the SEC since XRP's initial coin offering (ICO) in 2013.
However, according to the law, even if Ripple refrained from violating the law after 2020, the SEC said there is still a risk that it will happen again. Ultimately, the SEC argues that Ripple's claims do not preclude the need for an injunction to prevent future violations.
Ripple’s counterattack and attention on the international stage
In response to the SEC's position in the appeal brief, Ripple's Chief Legal Officer Stuart Alderroti suggested that the regulator's credibility continues to decline. He noted that international financial regulators with strong regulatory frameworks for cryptocurrencies may be confused by the SEC's approach.
Mr. Alderoti criticized the SEC's lack of consistency in regulatory enforcement. He expressed optimism about the outcome of the XRP lawsuit, with analysts expecting a final verdict around September.
Meanwhile, Ripple is preparing to launch its XRPL enterprise solution in Japan through a strategic partnership with Tokyo-based consulting firm HashKey DX, demonstrating the company's determination to continue development despite regulatory challenges. It shows.
As the legal battle between Ripple and the SEC reaches its climax, US regulators are arguing for an injunction to prevent future violations. Meanwhile, Ripple has criticized the SEC's approach and continues to expand, especially in Japan. The cryptocurrency community is eagerly awaiting the epilogue of this trial, which could have major implications for the entire ecosystem.
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