Challenging the SEC: Ripple Fights Back Against Hefty Penalties
Ripple is pushing back against the U.S. Securities and Exchange Commission’s (SEC) demand for the company to pay nearly $2 billion in fines. Here’s what you need to know:
Ripple’s Response to SEC’s Request
- In March, the SEC requested Ripple to pay a total of $1.95 billion in penalties.
- Ripple filed a response opposing the SEC’s motion, arguing against the proposed penalties.
- The company asserts that the court should reject the SEC’s demands for disgorgement, interest, and penalties.
Proposed Penalties by Ripple
- Ripple suggests that the civil penalty should be capped at $10 million, significantly lower than the SEC’s request.
- The company’s attorneys argue that this amount aligns with comparable cases and reflects a fair percentage of Ripple’s revenues.
- They emphasize that this proposed penalty is proportionate to the circumstances of the case.
Background of the Legal Battle
- The SEC initially sued Ripple in late 2020 over allegations of selling XRP as an unregistered security.
- In a previous ruling, a judge found that Ripple’s direct sales to institutional buyers constituted securities offerings.
- However, automated sales through the open market were not deemed as security offerings, contrary to the SEC’s claims.
💡 Ripple Firmly Counters SEC’s Penalty Demand, Offering a Cap of $10 Million 💡
Ripple has taken a stand against the SEC’s request for substantial penalties, proposing a significantly lower amount of $10 million as a reasonable cap. The legal battle between Ripple and the SEC continues as the company challenges the SEC’s penalties, emphasizing the proportionality and fairness of the proposed amount.
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