- The SEC’s latest filings highlight concerns over Ripple’s unregistered XRP sales and plans for a stablecoin.
- Ripple’s CLO, Stuart Alderoty, criticizes the SEC’s approach stating that the regulator continues to disregard the law. He expresses hope for a settlement very soon.
Amid the broader market selling pressure, the XRP price continues to trade at 3% in the negative at $0.52 with a market cap of $28.7 billion. On Tuesday (May 7), the SEC vs. Ripple case gained attention as new court filings emerged, including the redacted version of the SEC’s remedies reply brief. Defense attorney James Filan shared this redacted reply brief, which highlighted key arguments from the SEC.
The SEC contended that Ripple’s primary business involves unregistered XRP sales, raising concerns about potential further violations of U.S. securities laws. Notably, the SEC referenced Ripple’s plans to launch a stablecoin, characterizing it as the issuance of a new unregistered cryptocurrency asset.
In response to Ripple’s claims regarding post-complaint XRP sales to accredited investors and via ODL sales, the SEC asserted that Ripple’s ODL Institutional Sales until 2020 were found to violate the law by the Court.
Conversely, Ripple has sought to minimize its culpability while underscoring its collaboration with the US SEC since the 2013 XRP ICO. However, in its latest remedies brief, the SEC underscored that, legally, even if Ripple has abstained from any infractions since 2020, the potential for future violations still exists, as reported by Crypto News Flash.
The SEC clarified that the availability of injunctive relief is unaffected by a defendant’s disavowal of intent to breach the law in the future or by discontinuing illegal actions. This stance is grounded in the nature of the transgressions, implying that the possibility of further violations persists despite the defendant’s assurances or cessation of unlawful conduct.
Ripple CLO Slams the SEC
In response to the SEC filing, Ripple Chief Legal Officer Stuart Alderoty expressed disappointment, stating that the SEC continues to disregard the law and attempt to deceive the judge. “Fortunately, we’re nearing the end of this legal battle, although many are just beginning. We have faith that the court will handle the remedies phase impartially,” he said.
Alderoty added: “Just when you thought the SEC couldn’t stoop any lower, if you’re a financial regulator outside the U.S. who has diligently crafted comprehensive crypto licensing frameworks, know that the SEC doesn’t value your efforts and views them as akin to issuing fishing licenses”.
The entire crypto community has been eagerly awaiting the final settlement in the Ruipple vs SEC case, per the Crypto News Flash report. However, some market analysts believe that it won’t be until September that a final settlement shall arrive until the XRP lawsuit.
Amid this delay, the XRP price has been not getting enough ammo to rally with other altcoins. The XRP price has been trading close to $0.50 for a long while not getting enough catalyst to $1.0.
XRP remained positioned below both the 50-day and 200-day Exponential Moving Averages (EMAs), indicating bearish price trends.
A breakthrough above the 50-day EMA might empower the bulls to challenge the 200-day EMA and the resistance level at $0.5739. Surpassing the $0.5739 resistance level could pave the way for a move towards the $0.60 mark.