Home Altcoins News Ripple Pushes Back Against SEC’s $2 Billion Penalty Demand, Citing Excessive Punishment

Ripple Pushes Back Against SEC’s $2 Billion Penalty Demand, Citing Excessive Punishment


In a recent legal showdown between Ripple and the U.S. Securities and Exchange Commission (SEC), the cryptocurrency firm has fired back at the regulatory body’s demand for a staggering $2 billion in penalties. Ripple’s opposition, made public by its defense lawyer, James Filan, challenges the SEC’s punitive stance, arguing for a much lower penalty of $10 million. The move comes amidst a contentious legal battle that has captured the attention of both the crypto community and financial regulators.

Ripple’s filing highlights the disproportionate nature of the SEC’s proposed fines, emphasizing that there were no allegations or findings of reckless behavior or fraudulent activity to warrant such severe financial penalties. The company asserts that its sales of XRP were conducted transparently and with knowledgeable institutional investors who were fully informed about the transactions.

Central to Ripple’s argument is the absence of findings suggesting reckless behavior or fraud, factors typically associated with hefty penalties. The company points to its legal victories in the ongoing litigation, which they believe undercut the SEC’s position and call into question the basis for the proposed fines.

Stuart Alderoty, Ripple’s Chief Legal Officer, minced no words in denouncing the SEC’s demand, characterizing it as part of a broader campaign of intimidation against the crypto industry in the United States. Alderoty emphasized that Ripple’s opposition aims to uphold fairness and prevent regulatory overreach that could stifle innovation in the burgeoning sector.

In a strategic move, Ripple has proposed a significantly lower penalty of $10 million, arguing that it better reflects the alleged violations and the company’s conduct throughout the proceedings. They assert that this amount strikes a balance between accountability and avoiding disproportionate punishment.

The legal battle between Ripple and the SEC has captivated the cryptocurrency community and beyond, with stakeholders closely monitoring developments amid concerns over regulatory clarity and its impact on market dynamics.

Furthermore, Ripple points to significant legal victories it has secured throughout the litigation process, suggesting that the SEC’s demands are inconsistent with the court’s findings. Stuart Alderoty, Ripple’s Chief Legal Officer, denounces the SEC’s request as evidence of ongoing intimidation against the cryptocurrency industry in the United States.

The proposed penalty of $10 million, according to Ripple, is more in line with the alleged violations and the company’s actual conduct. Ripple contends that this amount is sufficient to address any legal concerns without unfairly burdening the firm.

The legal battle between Ripple and the SEC has reached a critical juncture, with the next steps involving the court’s review of both parties’ arguments and the final decision on penalties to be made by Judge Analisa Torres. Despite the uncertainty surrounding the outcome, Ripple remains confident in the fairness of the judicial process.

Meanwhile, the price of XRP has experienced a modest increase following the announcement of Ripple’s opposition to the SEC’s penalty demand. According to CoinMarketCap, XRP is currently trading at $0.5464, up by 1.6% from its previous value, with a peak at $0.5687 post-filing announcement.

As the legal saga unfolds, stakeholders in the cryptocurrency market eagerly await the resolution of this high-stakes dispute, which could have significant implications for the future regulation of digital assets in the United States.

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Sakamoto Nashi

Nashi Sakamoto, a dedicated crypto journalist from the Virgin Islands, brings expert analysis and insight into the ever-evolving world of cryptocurrencies and blockchain technology. Appreciate the work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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