Ripple vehemently rejects a proposed $2 billion fine from the SEC for alleged unregistered securities offerings of XRP tokens.
Despite the fierce legal battle that could drag on for years, Ripple’s CEO remains hopeful that a resolution could be reached by September 19.
The ongoing legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC) has entered a critical phase. Ripple is vigorously challenging the SEC’s proposed $2 billion penalty for purported unregistered securities offerings of XRP tokens. Instead, Ripple is advocating for a significantly reduced fine.
The legal dispute dates back three years, focusing on Ripple’s alleged unregistered securities offering through the sale of XRP tokens.
Earlier this year, the SEC imposed a $2 billion fine on the blockchain company for the alleged violations. In response to the proposed fine, Ripple’s chief legal officer, Stuart Alderoty, passionately argued for a maximum fine of $10 million.
In their defense, Ripple’s legal team cited the penalties imposed on TerraForm Labs and emphasized the differences between the two cases, claiming that there were no direct fraud allegations against the blockchain company. The legal team agreed to pay penalties totaling $4.47 billion for fraudulent activities, including $3.6 billion in disgorgement, $466 million in prejudgment interest, and a $420 million civil penalty.
Ripple’s attorney argued that the SEC typically recommends civil penalties ranging from 0.6% to 1.8% of a defendant’s gross revenue, a precedent that should apply to Ripple as well. The defense team insisted that an “appropriate fine” should not exceed $10 million.
The complexity of the legal battle suggests that the case could drag on for years. However, Ripple CEO Brad Garlingouse remains optimistic about a possible resolution. He has hinted that the case could conclude by late September.
In a positive development, lawyer Jeremy Hogan predicts a potential settlement of $100 million. This optimistic outlook is shared by the Ripple community, bolstered by their previous legal victories.
Despite the legal turmoil, XRP was trading at $0.4902 at the time of writing, marking a 1.26% increase in the last 24 hours. The outcome of the legal battle holds significant implications for the cryptocurrency market and regulatory landscape. A favorable ruling for Ripple could not only boost XRP’s price but also set a precedent for future regulatory actions.
