The cryptocurrency community is eagerly awaiting the resolution of the prolonged legal dispute between Ripple and the United States Securities and Exchange Commission (SEC). Recently, the SEC filed its remedies reply brief and supporting exhibits, releasing a public, redacted version after initially filing them under seal. This update was shared by defense attorney and former federal prosecutor James K. Filan in a post on X on May 8.
SEC's brief information
The SEC's brief contends that Ripple's claims of not acting recklessly are contradicted by evidence, and its additional arguments are deemed ineffective, thus advocating for the necessity of the requested injunctions. Ripple's argument regarding the SEC's own conduct, suggesting the agency was aware of Ripple's activities since October 2013, is dismissed by the SEC as meritless.
Furthermore, the SEC accuses Ripple of planning to issue a new unregistered crypto asset, citing the company's announcement of the planned dollar-pegged stablecoin release on April 4, 2024, as evidence of ongoing violations.
Regarding Ripple's opposition to paying the $2 billion in damages over its XRP sales to institutional buyers, which Judge Analisa Torres ruled were securities sales, the SEC rebukes Ripple's proposal for a "low" penalty, under $10 million, arguing that such a minimal penalty fails to adequately punish violations or deter future non-compliance in large-scale capital raises without required registration.
SEC case comments Ripple
Ripple's chief legal officer, Stuart Alderoty, expressed disappointment with the SEC's practices in the case, accusing the securities watchdog of attempting to deceive the judge. However, Alderoty emphasized that they are nearing the end of the lawsuit and trust the court will handle the remedies phase fairly.
Alderoty also criticized the SEC's argument comparing Ripple's possession of crypto licenses from different jurisdictions to a New York restaurant not needing a liquor license because it has a fishing license in California. He highlighted the SEC's disregard for financial regulators outside the US who have established comprehensive crypto licensing frameworks.
Meanwhile, XRP, the token central to the Ripple v. SEC legal standoff, was trading at $0.51 at the time of reporting. It experienced a slight decline in the last 24 hours, a decrease of 2.17% over the past week, and a loss of 15.17% on its monthly chart as of May 10.
May 2024, Cryptoniteuae