Ripple is standing up to the SEC’s request for a hefty $2 billion fine. In a recent court filing dated April 22, Ripple argued against the SEC’s demand and suggested a different solution.
They proposed that the Court should dismiss the SEC’s request and impose a much smaller civil penalty, capped at $10 million.
Ripple Challenges SEC’s $2 Billion Fine Demand
Stuart Alderoty, Ripple’s Chief Legal Officer, expressed the company’s position on the X platform, highlighting that the case lacks allegations or findings of recklessness or fraud. He argued that the SEC’s demand is part of a broader pattern of intimidating actions against the crypto industry in the US. Alderoty noted Ripple’s significant legal victories in the case.
Ripple CEO Brad Garlinghouse echoed Alderoty’s sentiments, suggesting that the consequences of the SEC’s policies will persist long after Gensler’s tenure.
Ripple maintains that the SEC’s demand for a $2 billion fine is evidence of regulatory overreach and lacks legal or principled basis. The company contends that the agency’s demands rely on speculative future violations. However, Ripple asserts that it has adjusted its approach to XRP token sales to comply with court mandates.
Ripple Adjusts XRP Sales, SEC Dispute
In its court filing, Ripple emphasized its adjustments to XRP sales, stating that it has modified its selling methods and contracts to address issues identified by the court. The company highlighted its efforts to ensure that its counterparties meet accredited investor qualifications.
Ripple also contested the SEC’s demand, stating that it exceeds by over 20 times what the regulator has obtained from any other defendant or respondent in a digital-asset case. As a result, Ripple argued against the necessity of disgorgement and urged the rejection of prejudgment interest requests by the SEC.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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