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SEC Raises Concerns Over Ripple’s Compliance in its Final Reply in XRP Case

The US Securities and Exchange Commission (SEC) has issued a final response in the ongoing litigation with Ripple, expressing concerns about the company’s past actions and proposed operational changes. The SEC questions Ripple’s claim of non-recklessness in its sale and distribution of XRP tokens, citing a pattern of behavior that could lead to future regulatory breaches. The regulatory body is adamant about the need for strict legal oversight to prevent such outcomes.

In its filing, the SEC refutes Ripple’s assertions and criticizes the company’s plan to reformat its XRP sales based on the lawsuit’s outcome. The SEC doubts Ripple’s commitment to future compliance with regulatory standards, given its history. The agency also takes issue with Ripple’s proposal to limit XRP sales to non-U.S. markets and accredited investors, stating that this strategy may not adequately address legal risks.

Ripple’s suggested operational changes, including modifications to its sales contracts, were criticized by the SEC for being insufficient and not aligning with past breaches. Despite these challenges, Ripple continues its business activities, recently partnering with a Tokyo consulting firm to enhance its enterprise solutions in Japan. The SEC maintains that Ripple’s historical activities warrant strict legal oversight and raises doubts about the effectiveness of the company’s proposed operational changes.

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