San Francisco-based company Ripple has lodged a protest against the resolution put forward by the US Securities and Exchange Commission (SEC). The SEC recently requested precautionary measures, penalties, and profit distribution in the Ripple case, potentially resulting in a $2 billion payment by the company.
What Did the SEC Say About Ripple?
The SEC argued in its proposal that the company’s reckless actions and repeated breaches of securities laws justified the substantial amount of penalties. These penalties are intended to discourage Ripple and other industry players from disregarding the laws in the future.
However, in its latest filing, Ripple counters the SEC’s claims by asserting that it must provide evidence of future law violations. Ripple also defends its corporate sales by citing interactions with other US regulators and regulatory actions in major jurisdictions, claiming that it did not “recklessly disregard” the law.
Emphasis on the Precautionary Measure Decision
Ripple asserts that any precautionary measures should be specific and limited. According to the company, the SEC cannot prove that its corporate sales caused any significant harm, and therefore no compensation is necessary. Regarding the fine, Ripple argues that it should not exceed $10 million. Ripple’s application states, “The Court should reject the SEC’s requests for precautionary measures, compensation, and pre-trial interest and should impose a fine not exceeding $10 million.”
Ripple’s response to the SEC’s request comes at a crucial time. Bloomberg reported yesterday that two SEC lawyers had resigned following a federal judge’s rebuke of the regulatory body for abusing its authority in the DEBT Box case. The 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 expressed on the X social media network, “The US will suffer the consequences of the institution’s disastrous policies long after Gensler’s departure.”
Ripple’s clash with the SEC is being closely monitored in the cryptocurrency community. The outcome of this case and the SEC’s decision could have a significant impact on the cryptocurrency markets. At the time of writing, the price of XRP stands at $0.55.
Disclaimer:
The information provided in this article should not be construed as investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research.
