Update on SEC vs. Ripple Legal Battle
The U.S. Securities and Exchange Commission (SEC) is actively challenging Ripple’s proposal for a significantly reduced fine in the ongoing legal dispute over the sale of XRP tokens. The SEC argues that Ripple’s suggestion of a $10 million penalty is inadequate compared to the approximately $2 billion fine proposed by the regulator.
Legal Dispute Overview
- The SEC and Ripple have been in a legal battle since December 2020.
- The SEC accuses Ripple of raising $1.3 billion through XRP sales, which it deems as unregistered securities.
The recent court ruling by Judge Analisa Torres acknowledged that some of Ripple’s XRP sales did not breach securities laws due to a blind bid process. Nonetheless, direct sales to institutional investors were deemed as securities.
Ripple’s Proposed Penalty
- Ripple advocates for a $10 million fine, significantly lower than the SEC’s $2 billion proposal.
- The SEC argues that such a lenient penalty could incentivize other crypto issuers to disregard securities laws.
The SEC disputes Ripple’s claims of future compliance, emphasizing the risk of ongoing violations and investor detriment. Ripple’s references to licenses from various jurisdictions were dismissed by the SEC as inadequate for justifying compliance.
Ripple’s Response and Criticism
- Ripple’s Chief Legal Officer, Stuart Alderoty, criticized the SEC on social media for its handling of the lawsuit.
- Alderoty expressed confidence in Ripple’s progress in the legal battle and criticized the SEC’s treatment of international financial regulators.
Alderoty’s remarks highlighted the disparity in perceptions of regulatory frameworks and implied a lack of respect from the SEC towards global regulators.
Hot Take: Ripple’s Legal Battle Future
The legal dispute between Ripple and the SEC continues as both sides advocate for their respective penalties. The outcome of this battle could have significant implications for the crypto industry and regulatory standards. Stay tuned for further developments in this high-stakes legal showdown.
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