San Francisco-based Ripple, a well-known company in the cryptocurrency industry, has lodged a formal objection against the resolution put forward by the US Securities and Exchange Commission (SEC). Last month, the SEC requested punitive measures, fines, and profit distribution in relation to the Ripple case, which could potentially cost the company $2 billion.
What Did the SEC Say About Ripple?
The SEC argued in its proposal that the company’s reckless behavior and repeated violations of securities laws justified the substantial amount of the penalties. These penalties are intended to serve as a deterrent to Ripple and other industry players to prevent future law-breaking.
However, in its most recent filing, Ripple disputes the SEC’s claims and argues that the company must provide evidence that it will violate the laws again in the future. Ripple also defends its corporate practices by citing its interactions with other US regulators and the regulatory actions taken by major jurisdictions, asserting that it did not “recklessly disregard” the law.
Emphasis on the Precautionary Measure Decision
Ripple emphasizes that any precautionary measures taken by the SEC should be specific and narrowly tailored. According to Ripple, the SEC has failed to demonstrate that its corporate practices have caused any significant harm, therefore negating the need for compensation. As for the proposed fine, Ripple argues that it should not exceed $10 million. The company’s application states, “The Court should reject the SEC’s requests for precautionary measures, compensation, and pre-trial interest, and instead impose a fine no greater than $10 million.”
Ripple’s response to the SEC’s request comes at an opportune time. Bloomberg reported yesterday that two SEC lawyers had resigned after a federal judge reprimanded the regulatory body for abusing its authority in the DEBT Box case. These lawyers had misrepresented key facts in order to obtain a temporary restraining order against a crypto company based in Utah.
When Gensler Leaves
Ripple CEO Brad Garlinghouse took to the X social media network to express his thoughts, stating, “The US will suffer the consequences of the institution’s disastrous policies long after Gensler departs.”
Ripple’s ongoing legal battle with the SEC is attracting significant attention within the cryptocurrency world. The outcome of this case and the SEC’s decision could have a substantial impact on the cryptocurrency markets. At the time of writing, the price of XRP stood at $0.55.
Disclaimer:
The information provided in this article is not intended as investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry a certain level of risk, and should conduct their own research before making any investment decisions.
