Pryor Cashman Partner Jeffrey Alberts, Co-Chair of the firm’s Financial Institutions and FinTech Practices, was quoted in a recent Law360 article analyzing the unresolved compliance risks Ripple Labs continues to face following the conclusion of its high-profile enforcement battle with the U.S. Securities and Exchange Commission (SEC).

In the article, “Ripple Exits SEC Case With An Injunction Still Over Its Head,” Jeffrey discussed how the permanent injunction imposed by U.S. District Judge Analisa Torres leaves Ripple exposed to future enforcement actions, even as both the company and the SEC agreed to drop their respective appeals.

Jeffrey emphasized that the injunction creates a streamlined pathway for the SEC to take action if it believes Ripple has violated securities laws in the future:

“That means that they are in front of the same judge, which Ripple might not prefer […] [a]nd you can often get a much quicker ruling than if there was a brand-new case.”

He also warned that even though the current administration may be less aggressive in pursuing registration violations in the crypto space, firms like Ripple cannot afford to become complacent. Regulatory priorities can shift significantly with political transitions:

“The SEC's ability to bring an action against this type of violation extends for years, and it can be extended … likely into the next administration[.] So anybody proceeding with the understanding that the current administration's stance would be binding under the next administration could be wrong.”.

Read the full article using the link below.