Ripple Labs and the United States Securities and Exchange Commission (SEC) have made significant progress in their legal battle, with the SEC filing its final reply in the lawsuit’s remedies stage.

In its recent response to the remedies brief, the SEC challenged Ripple’s insistence that the blockchain startup acted without recklessness and that there should be no “widespread uncertainty” about the legal status of XRP ( XRP ) despite the court previously rejecting this “fair notice” defense.

The SEC also maintains its stance on whether Ripple will likely engage in similar actions in the future, even though Ripple has not violated any rules since the XRP lawsuit was initiated in 2020.

According to the remedies brief, Ripple has tried to downplay its liability while highlighting its cooperation with the SEC since the 2013 XRP initial coin offering.

However, the SEC emphasized that, according to the law, even if Ripple had refrained from violations since 2020, another breach is still possible.

The SEC argues that Ripple’s assurances about changing its behavior post-lawsuit do not justify avoiding injunctions. According to the SEC, Ripple’s claims of following legal guidance and restructuring future XRP sales based on the lawsuit’s order are misleading. The SEC contends that Ripple misinterprets the order and fails to accept its implications for compliance.

The reply refutes Ripple’s assertions about conducting sales outside the U.S. and to accredited investors, as these defenses were abandoned during summary judgment.

Additionally, Ripple’s claims of contract changes for on-demand liquidity sales are dismissed, as these contracts already lacked certain restrictions identified as violations.

Related: Did XRP price just bottom against Bitcoin?

Ultimately, the SEC argues that Ripple’s assertions do not negate the need for injunctions to prevent future violations.

Responding to the SEC’s reply in the remedies brief, Ripple’s chief legal officer, Stuart Alderoty, commented that the SEC’s reputation continues to decline.

He highlighted that international financial regulators with robust crypto licensing frameworks might be surprised that the SEC regard its efforts as akin to issuing fishing licenses.

SEC files final response in Ripple XRP case image 0 Source: Stuart Alderoty

Alderoty criticized the SEC for not consistently applying the law. He expressed optimism about resolving the XRP lawsuit. While the crypto community eagerly awaits the case’s outcome, analysts anticipate a final judgment around September.

Ripple is set to introduce XRPL enterprise solutions to the Japanese market through a strategic partnership with Tokyo-based consulting firm HashKey DX.

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