Ripple Labs and the United States Securities and Exchange Commission (SEC) have reached a pivotal juncture in their legal dispute, as the SEC submitted its final response in the lawsuit's remedies phase. The recent filing from the SEC challenges Ripple's assertions regarding the blockchain company's alleged lack of recklessness and the perceived clarity of XRP's legal status, despite previous dismissal of Ripple's "fair notice" defense by the court.

The SEC maintains its position on Ripple's potential future misconduct, despite the absence of violations since the commencement of the XRP lawsuit in 2020. Ripple has sought to minimize its liability while emphasizing its cooperation with the SEC since the initial coin offering of XRP in 2013. However, the SEC contends that even if Ripple has refrained from violations in recent years, the possibility of future breaches cannot be discounted under the law.

The SEC rebuffs Ripple's claims of compliance and restructuring of XRP sales post-lawsuit, asserting that Ripple misinterprets the court's order and fails to acknowledge its implications for regulatory compliance. Ripple's defenses, including sales conducted outside the U.S. and to accredited investors, are dismissed as abandoned during summary judgment. Similarly, Ripple's proposed changes to on-demand liquidity sales contracts are invalidated, as these contracts already lacked certain restrictions identified as violations.

In response to the SEC's rebuttal, Ripple's chief legal officer, Stuart Alderoty, criticized the SEC's approach, suggesting a decline in the agency's reputation. Alderoty expressed optimism about resolving the XRP lawsuit and highlighted Ripple's strategic partnership with HashKey DX to introduce XRPL enterprise solutions in the Japanese market. As the case progresses, both parties await a final judgment, with analysts anticipating a resolution around September.