Ripple counters SEC with $10M move 🚀🌟📈

Ripple’s Opposition to SEC’s Demands: $10 Million or $2 Billion?

As you navigate through the ongoing legal battle between Ripple and the US Securities and Exchange Commission (SEC), Ripple has recently filed its opposition to the SEC’s motion for remedies and entry of final judgment. The fintech company is pushing back against the SEC’s request for penalties close to $2 billion, proposing a maximum fine of only $10 million instead. In their 186-page opposition document submitted late Monday, Ripple lays out its arguments against the SEC’s stringent demands following a court ruling that found Ripple guilty of securities law violations for selling XRP to institutional investors without proper registration.

Ripple’s Acknowledgment and Compliance Adjustments

Ripple begins by acknowledging its violation of securities laws, affirming its acceptance of the court’s decision and highlighting the adjustments made to ensure compliance. The company states, “Ripple has publicly recognized the ruling and reiterates its compliance. It has altered the method of selling XRP and revised its contracts to address the issues identified by the Court.” This acknowledgement is crucial in setting the foundation for Ripple’s argument that additional punitive measures, such as an injunction, are unwarranted.

Ripple acknowledges violation and compliance adjustments
The company argues against the need for further punitive measures

Opposition to SEC’s Proposed Injunction

Ripple strongly opposes the SEC’s proposed injunction, contending that significant changes have already been implemented to prevent future violations. The document emphasizes, “The SEC does not demonstrate a reasonable likelihood of future violations.” Ripple’s argument is based on the proactive measures taken to mitigate the risk of repeating past mistakes.

Ripple opposes SEC’s proposed injunction
Emphasis on proactive measures to prevent future violations

Disagreement with SEC’s Demand for Disgorgement

The fintech company disputes the SEC’s call for disgorgement, claiming that it is unjustified due to the lack of demonstrated harm to investors caused by Ripple’s actions. Ripple’s opposition document asserts, “The SEC fails to prove the necessity of disgorgement. Govil precludes disgorgement as the SEC cannot show harm.” This argument is crucial in defending Ripple, highlighting the absence of direct financial harm to investors resulting from the company’s activities.

Ripple disagrees with SEC’s demand for disgorgement
Emphasis on lack of demonstrated harm to investors

Argument for Reduced Civil Penalties

Ripple advocates for a significant reduction in civil penalties, citing the disproportionality of the SEC’s request compared to penalties in similar cases. The opposition document states, “ANY CIVIL PENALTY SHOULD NOT EXCEED $10 MILLION,” suggesting that this amount aligns better with precedents and the nature of the violations.

Ripple argues for reduced civil penalties
Comparison with penalties in similar cases

Legal Precedents and Defense

The defense heavily relies on legal precedents, with multiple citations aimed at fortifying Ripple’s position against harsh penalties. One such precedent cited is Arthur Lipper Corp. v. SEC, used to argue against the necessity of an injunction. The document highlights that an injunction is intended to “prevent anticipated future harm” and requires “conclusive evidence of a credible likelihood of repetition of past wrongdoing,” a criterion Ripple believes is not met given its corrective actions.

Reliance on legal precedents in defense
Use of Arthur Lipper Corp. v. SEC as an example

Feedback from the XRP Lawyer Community

Reactions from the pro-XRP legal community indicate confidence in Ripple’s arguments. Notable pro-XRP lawyer Bill Morgan comments on Ripple’s strong position against disgorgement, stating, “I think this argument is correct, and disgorgement should not be granted if it results in windfall profits for investors.” The sentiment within the legal community suggests a positive outlook for Ripple in the legal battle.

Positive feedback from pro-XRP lawyers
Confidence in Ripple’s legal position

Anticipating Judge Torres’ Decision

Legal experts and observers, including Jeremy Hogan and James “MetaLawMan” Murphy, discuss the upcoming steps in the Ripple-SEC case. Jeremy Hogan highlights the significant legal challenges the SEC faces and notes missed opportunities in their initial brief. James “MetaLawMan” Murphy provides insights into the timeline for Judge Torres’ decision, expecting a quicker resolution compared to previous rulings.

Discussion on legal experts’ opinions
Expectations for Judge Torres’ decision timeline

Current XRP Trading Performance

As of the latest update, XRP is trading at $0.54921, reflecting a 2.5% increase in the past 24 hours. The market continues to react to developments in the legal proceedings between Ripple and the SEC, influencing XRP’s trading performance.

Hot Take: Ripple’s Legal Defense and Future Outlook

Based on the recent developments in the Ripple-SEC lawsuit, Ripple’s opposition to the SEC’s demands highlights a strategic legal defense aimed at minimizing the penalties the company may face. With strong arguments against punitive measures, Ripple’s proactive compliance adjustments and legal strategies indicate a confidence in navigating the legal complexities of the case, shaping a positive outlook for the company’s future.