There has been a new development in the legal fight between Ripple and the SEC, which has been going on for about three and a half years.
The SEC has filed its final response in the complex ongoing litigation, and the case has reached a critical point.
At this point, while all eyes are on the judge's decision with the SEC's response, some industry participants believe that there may be an agreement between the SEC and Ripple, while others think that there is no possibility of an agreement due to the complexity of the court process and that the case may even take longer.
What Did the SEC Say in Its Response?
In its response to the court, the SEC reiterated its claim that Ripple's main activity is the unregistered sale of XRP, and also mentioned that Ripple is preparing to launch a new cryptocurrency.
Stating that Ripple acted recklessly in its new blockchain initiative, these statements of the SEC were interpreted as a warning that the stablecoin that Ripple plans to launch in the near future will also be issued unregistered and as an effort to block the project.
The SEC also argued for a permanent injunction, citing concerns about Ripple's reliance on the sale of XRP as its main source of revenue.
XRP Case Will Be Over Very Soon!
While there was a lot of criticism against the SEC's approach to Ripple, an evaluation came from Ripple's Chief Legal Officer Stuart Alderoty.
Accusing the SEC of not enforcing the law and trying to mislead the judge handling the case, Alderoty said he believed the case would be over very soon.
Alderoty also recently criticized the SEC's stance on crypto regulation, claiming that other international financial regulators are not respected.
“If you are a financial regulator outside the US and have done the hard work to create comprehensive crypto licensing frameworks, know that the SEC does not respect you and thinks you are handing out the equivalent of fishing licenses.”
More of the same from the SEC — failing to faithfully apply the law and trying to pull the wool over the Judge’s eyes. The good news is that we are closer than ever to putting this lawsuit behind us, though unfortunately, many are just starting the journey. We trust the Court… https://t.co/JGhxAtOuk1
— Stuart Alderoty (@s_alderoty) May 7, 2024
Possible Effects of the Decision!
The conclusion of the Ripple-SEC case also affects the entire cryptocurrency industry, such as XRP. Because Ripple's victory may result in a rally for XRP and many other cryptocurrencies, but in an opposite scenario, it may have negative consequences for XRP and the crypto industry.
*This is not investment advice.
