Ripple’s stance against the SEC’s penalty demands is rooted in an accusation of bias, with reference to the Terraform case. Monica Long, President of Ripple, criticized the SEC’s approach to cryptocurrencies at the Money20/20 event. Renowned XRP attorney Bill Morgan highlighted the SEC’s apparent “strange animus” towards Ripple, as the company’s legal battle with the agency escalates. Morgan suggested a potential bias, pointing out that the penalties sought by the SEC against Ripple are disproportionately severe compared to other crypto cases.
In a recent court filing, Ripple pointed to the TerraForm Labs case to illustrate this contradiction. The SEC had initially demanded $4.47 billion in penalties from TerraForm Labs, with $3.58 billion for disgorgement and $420 million in civil fines, as reported by CNF. This amounted to approximately 1.27% of TerraForm’s $33 billion in gross sales, despite significant investor losses and fraudulent activities. In contrast, the SEC is seeking an $876 million fine in the Ripple case, which is about 20 times higher than penalties in other crypto cases.
The disparity in penalty amounts has raised concerns about the SEC’s arbitrary and biased approach, according to Ripple’s legal team. CoinMarketCap data indicates that the price of XRP is currently around $0.4776, with a 2.14% drop in the last 24 hours and an 8.82% decrease over the past week. The ongoing legal uncertainties have contributed to this bearish trend in the market.
Furthermore, Monica Long has challenged the SEC’s stance on the cryptocurrency industry, advocating for more conducive conditions for innovation and clearer regulations. As the legal battle between Ripple and the SEC continues, the company’s efforts to navigate these challenges remain ongoing.