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Ripple and SEC Standoff Continues
Recently, the Securities and Exchange Commission (SEC) released a report reaffirming its belief that Ripple, the blockchain-based payment system company, is likely to commit further violations despite no evidence of misconduct following the legal battle in 2020. Ripple’s Chief Legal Officer (CLO) has accused the SEC of misapplying the law in their assessment.
Ripple has maintained a low profile since the lawsuit and has emphasized that the legitimacy of its digital asset XRP should not be called into question, despite being the focal point of the SEC’s latest evaluation.
The company highlighted its ongoing communication with the SEC dating back to the XRP initial coin offering in 2013, underscoring that its level of culpability is far less significant than portrayed by regulatory authorities. However, the SEC has not ruled out the possibility that Ripple may engage in similar conduct in the future.
Clarifying their stance, the SEC indicated that the injunction provision in question is not contingent upon Ripple’s future compliance with the law or cessation of fraudulent practices. This suggests that the potential for illicit behavior persists, notwithstanding Ripple’s commitment to avoiding a repeat of past transgressions.
Legal Implications and Market Dynamics
Despite Ripple’s adherence to legal standards post-litigation, the SEC remains unwavering in its skepticism towards the company. Ripple’s chief legal officer, Stuary Alderoty, criticized the SEC for what he perceives as a flawed application of legal principles in the aftermath of the regulatory report.
Industry experts anticipate that a conclusive resolution to this dispute is unlikely until at least September, given the entrenched positions of both parties. Alderoty reaffirmed Ripple’s firm stance and expressed doubts about the SEC’s willingness to reconsider its decision, regardless of external perceptions of fairness.
Simultaneously, the market value of XRP continues to appreciate steadily, with forecasts suggesting that it could surpass $10 in the near term. This upward trend reflects investor confidence in the underlying technology and potential growth prospects, independent of regulatory uncertainties surrounding Ripple’s legal standing.
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