SEC files final response in XRP lawsuit, rejects Ripple’s claims

SEC Response to Ripple Lawsuit

The United States Securities and Exchange Commission (SEC) has filed its final response to the ongoing lawsuit against Ripple. In the filing, the commission refuted Ripple’s claims of not acting recklessly in handling the XRP cryptocurrency. The SEC pointed out that Ripple’s defense of “fair notice” was previously dismissed by the court, despite the company’s assertion of no widespread uncertainty regarding XRP’s legal status.

Ripple Compliance and Regulatory Issues

Furthermore, the SEC highlighted Ripple’s attempts to minimize liability by emphasizing its cooperation with regulatory authorities since the 2013 initial coin offering of XRP. However, the regulator argued that compliance does not eliminate the risk of future violations. The filing also addressed Ripple’s claims of restructuring future XRP sales and following legal advice, stating that these actions do not accurately reflect judicial orders and compliance implications.

SEC Rejection of Ripple’s Defenses

In addition, the SEC dismissed Ripple’s defenses regarding XRP sales outside the U.S. and to accredited investors, noting that these arguments were not sustained during summary judgment. The commission also rejected Ripple’s adjustments to contracts for on-demand liquidity sales, stating that the revised contracts still lack necessary restrictions, posing ongoing legal risks. The SEC maintains that despite reassurances from Ripple and an absence of recent violations, the potential for future breaches justifies the need for injunctions to ensure compliance moving forward.

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