Ripple CLO Criticizes SEC’s Resolution Application Response, Full Details

[Alonzo]

ripple CLO Criticizes SEC’s Resolution Application Response, Full Details



Earlier this week, the U.S. Securities and Exchange Commission (SEC) filed its supporting resolution brief, which is now publicly available. The SEC confirms Ripple‘s arguments on whether it will repeat its past actions, despite the fact that it has not violated any rules since the XRP case was filed in 2020.

SEC’s Settlement Summary for XRP Case


In its latest settlement brief, the US SEC countered Ripple’s arguments, stating that the blockchain startup did not act recklessly and that there should not be any “pervasive uncertainty” regarding the legal status of XRP. However, the court had previously rejected this “fair notice” defense.


Ripple, on the other hand, has attempted to downplay its liability by highlighting its cooperation with the US SEC since the 2013 XRP ICO. In its summary of last resorts, the US SEC emphasizes that, according to the law, even if Ripple has avoided any breach since 2020, there is still a possibility of foreseeing another breach.

The SEC made clear that the availability of injunctive relief is not affected by the defendant’s waiver of future intent to violate the law or cessation of illegal acts. This view is based on the type of violations committed; This suggests that the potential for further violations remains, even if the defendant promises not to commit them again or ceases their illegal activities.


Although Ripple claims to have made significant changes to prevent future breaches, the SEC is skeptical, arguing that these changes are insufficient. SEC wrote:

Ripple’s “assurance” that its unregistered sales “avoid the issues identified” in the Order is based on a misreading or ignoring of what is said in the Order. Ripple’s initial “assurance” isn’t even a real assurance; instead, it is another attempt to reconsider summary judgment arguments.

Ripple CLO Criticizes SEC


Shortly after the SEC’s resolution brief was filed, Ripple’s chief legal officer, Stuary Alderoty, said the SEC had consistently failed to faithfully enforce the law. Interestingly, He added that they are closer to leaving the XRP case behind. Although the broader crypto community is eagerly awaiting the final decision in the Ripple and SEC case, analysts believe it will not come until September.

More of the same from the SEC: not faithfully applying the law and trying to discredit the judge. The good news is that we are closer than ever to putting this case behind us, but unfortunately many are just beginning this journey. We trust the court…

— Stuart Alderoty (@s_alderoty) May 7, 2024

Referring to the SEC’s response in the settlement brief, Stuart Alderoty noted that financial regulators outside the US, who have diligently developed comprehensive crypto licensing frameworks, should be aware that the SEC does not pay much attention to them, given that the SEC’s reputation cannot be further diminished. , they just like the effort to issue fishing licenses.

Amidst all the developments, analysts remain hopeful that the XRP price will revive and expect the price to rise up to $10.



✓ Share:








Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.





The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.

#Ripple #CLO #Criticizes #SECs #Resolution #Application #Response #Full #Details