Ripple’s Chief Legal Officer, Stuart Alderoty, openly criticized the SEC for what he perceived as unjust legal tactics.
According to Crypto News Flash, analysts have stated that the SEC’s remedies brief lacks substance as it failed to present new evidence regarding potential damages.
The recent filing by the U.S. Securities and Exchange Commission (SEC) emphasized the unregistered sales of XRP to institutional players and the possibility of future violations.
This development has sparked strong reactions, leading Ripple’s Chief Legal Officer, Stuart Alderoty, to openly question the fairness of the SEC’s legal strategies.
In its remedies brief, the SEC argues for “permanent injunctions,” claiming that there is a reasonable chance of Ripple repeating its alleged wrongdoing. However, Ripple has not committed any violations since the SEC filed the XRP lawsuit in December 2020.
Ripple asserts that it has revamped its operations to comply with regulations, but the SEC views this as a mere repetition of old arguments rather than a sincere reform effort. The SEC counters by stating that Ripple’s initial “assurance” lacks substance and accuses Ripple of attempting to rehash previous legal contentions. The SEC’s recent remedies brief directly implicates Ripple, suggesting that any changes made by the company are either misinterpretations or deliberate disregard for regulatory guidelines.
Ripple’s CLO Responds Strongly
Following the publication of the SEC’s remedies brief, Ripple’s Chief Legal Officer Stuart Alderoty did not shy away from criticizing the SEC. He accused the agency of disregarding international regulatory norms and 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 established comprehensive crypto licensing frameworks, know that the SEC has no respect for you and believes you are issuing fishing licenses.”
This clearly demonstrates the ongoing friction between Ripple and the U.S. SEC as both sides fiercely battle for a final settlement. As reported by Crypto News Flash, the final settlement in the Ripple vs. SEC case is not expected until September.
SEC’s Brief May Not Have a Significant Impact
Attorney Jeremy Hogan suggests that the SEC’s final brief may not have the expected impact. He notes that the SEC seems to have sidestepped directly challenging Ripple’s XRP sales through its On-Demand Liquidity (ODL) service and instead focuses on claims of Ripple rehashing settled points. Additionally, Hogan suggests that the SEC failed to present new evidence regarding potential damages.
With the briefing phase concluded, all eyes are now on the presiding judge. According to lawyer James Murphy, also known as MetaLawMan in the XRP community, Judge Torres could reject the SEC’s arguments for injunctions and disgorgement, citing weak reasoning. Murphy also states that the SEC’s claims of institutional investors suffering financial harm lack substantial support.
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