Things are getting spicy in the courtroom. The SEC just threw down its latest legal bomb, a “redacted remedies reply brief.” It’s the prelude to a landmark ruling that could send ripples (pun intended) through the crypto space, particularly for Ripple (XRP-USD).
Ripple’s Tangle with the Law: A Recap
At the heart of this legal spaghetti is the question: Will Ripple’s past be its prologue? The SEC isn’t just throwing shade to make XRP look bad; they’re pointing to a pattern. Ripple’s been in the hot seat for its continuous merry-go-round of unregistered XRP token sales since 2013. And just when you thought they might clean up their act, boom, plans for a new unregistered crypto asset emerge.
Court documents spell out Ripple’s history, as told by the SEC, of under-the-table deals through Over-the-Counter (OTC) Institutional Sales up to 2020. Despite Ripple’s recent change in behavior post-2020, the SEC remains skeptical, acting like that one friend who can’t let go, insisting that past antics hint at future faux pas.
To Injunct or Not to Injunct
Ripple’s defense resembles a plotline from a legal drama. They assert they’ve acted lawfully but claim they were caught in a regulatory gray area regarding XRP’s legal status. However, the court has already dismissed Ripple’s “fair notice” defense, similar to rulings against Coinbase (NASDAQ: COIN).
Ripple tried to play the cooperation card, but the SEC wasn’t buying what they’re selling. They argue that playing ball with the regulators doesn’t erase the sins of the past, especially when Ripple ignored advice against peddling XRP as an investment. That’s a big no-no in the SEC’s books.
But the story doesn’t end there. Ripple’s promise to reform sounds nice, but the SEC is skeptical, calling out Ripple’s reforms as too little, too late, and based on a sketchy understanding of the legal playbook. Will Ripple weather the storm or get swept away by the SEC’s regulatory wave? Stay tuned.
Is XRP A Buy?
According to TipRanks’ Summary of Technical Indicators, XRP is a Hold.
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