Ripple Roiled: SEC Fires Final Salvo in $2 Billion Legal Battle

• Ripple’s Chief Legal Officer, Stuart Alderoty, openly criticized the SEC for what he perceived as unfair legal strategies.
• Analysts stated that the SEC’s remedies brief won’t hold substance since it failed to introduce new evidence regarding potential damages.

As reported by Crypto News Flash, the U.S. Securities and Exchange Commission (SEC) filed the remedies brief stressing the unregistered sales of XRP to institutional players while highlighting the possibility of future violations.

The most recent action has ignited intense responses, prompting Ripple’s Chief Legal Officer, Stuart Alderoty, to question the fairness of the SEC’s legal strategies openly.

In its remedies brief, the U.S. SEC has argued the need for “permanent injunctions” stating that there’s a reasonable likelihood of Ripple repeating this wrong. However, Ripple hasn’t made a single violation since the XRP lawsuit filed by the SEC back in December 2020.

Ripple asserts it has overhauled its operations to comply, yet the SEC sees this as recycling old arguments rather than a sincere effort to reform. The SEC rebuts, asserting that Ripple’s initial “assurance” lacks substance, labeling it as an endeavor to rehash previous legal contentions. Their recent remedies brief appears to accuse Ripple directly, suggesting any alterations made are either misinterpretations or deliberate disregard for regulatory directives.

Ripple CLO Gives Strong Response

After the SEC’s remedies brief was published, Ripple’s Chief Legal Officer Stuart Alderoty didn’t hold back. He lambasted the SEC for what he perceives as a lack of respect for international regulatory norms and accused the agency of attempting to deceive the court.

Alderoty added: “And just when you think the SEC can’t sink any lower if you are a financial regulator outside the U.S. and have done the hard work of establishing comprehensive crypto licensing frameworks, know that the SEC has no respect for you and thinks you are handing out the equivalent of fishing licenses.”

This clearly shows the ongoing friction between Ripple and the U.S. SEC as both sides give a tough fight for the final settlement. As reported by Crypto News Flash, the final settlement in the Ripple vs SEC case won’t happen until September.

SEC’s Brief Isn’t That Impactful

Attorney Jeremy Hogan indicated that the SEC’s final brief might not have the anticipated impact. He notes that the SEC seems to have sidestepped directly challenging Ripple’s XRP sales via its On-Demand Liquidity (ODL) service, instead focusing on claims of Ripple rehashing settled points. Additionally, he suggests that the SEC failed to introduce new evidence regarding potential damages.

The Ripple v. SEC briefs are FINISHED!

And I think the SEC went out with a whimper here.

It didn't even try to attack ODL sales, just noting that Ripple was trying to re-litigate the issue (which it is).

And it brought nothing new on damages.

Just waiting for The Judge now! https://t.co/r8nxNMTzqj pic.twitter.com/Futa93lXUb

— Jeremy Hogan (@attorneyjeremy1) May 8, 2024

With the briefing phase concluded, attention now turns to the presiding judge. According to lawyer James Murphy, also known as MetaLawMan by the XRP community, Judge Torres could reject the SEC’s arguments for injunctions and disgorgement, citing weak reasoning. Murphy also stated that the SEC’s claims of institutional investors suffering financial harm lack substantial support