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DailyBubble News

Ripple CLO Slams the SEC For Using Unfair Legal Strategies

Ripple’s Chief Legal Officer, Stuart Alderoty, openly criticized the SEC for what he perceived as unfair legal strategies. Analysts stated that the SEC’s remedies brief won’t hold substance since it failed to introduce new evidence regarding potential damages.

The U.S. Securities and Exchange Commission (SEC) recently filed a remedies brief emphasizing the unregistered sales of XRP to institutional players and highlighting the possibility of future violations. This action sparked intense responses, with Ripple’s Chief Legal Officer, Stuart Alderoty, openly questioning the fairness of the SEC’s legal strategies.

In its remedies brief, the SEC argued for “permanent injunctions,” claiming that there is a reasonable likelihood of Ripple repeating the alleged wrong. However, Ripple has not committed any violations since the XRP lawsuit was filed in December 2020. Ripple maintains that it has revamped its operations to comply with regulations, but the SEC views this as recycling old arguments rather than a genuine effort to reform.

Following the publication of the SEC’s remedies brief, Stuart Alderoty did not hold back in criticizing the SEC for what he perceives as a lack of respect for international regulatory norms and accused the agency of attempting to deceive the court. The ongoing friction between Ripple and the SEC continues as both sides push for a final settlement, anticipated to occur in September.

Attorney Jeremy Hogan noted that the SEC’s final brief may not have the expected impact, as it failed to directly challenge Ripple’s XRP sales through its On-Demand Liquidity (ODL) service and did not introduce new evidence regarding potential damages. The briefing phase has concluded, and attention now shifts to the presiding judge, who could reject the SEC’s arguments for injunctions and disgorgement, citing weak reasoning and lack of substantial support for claims of financial harm to institutional investors.

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