#Ripple #SEC #Cryptocurrency #LegalBattle #XRP #SecuritiesLaw #CryptoFine #Fintech
The tug of war between Ripple and the U.S. Securities and Exchange Commission (SEC) is taking new turns as the legal proceedings stretch over three years, now reaching the trial phase. The bone of contention originates from the SEC’s accusation that Ripple, alongside certain executives, engaged in unregistered securities offerings through the sale of its XRP tokens. Consequently, the SEC proposed a staggering fine of $2 billion against Ripple for the alleged violations. This proposal, however, was met with resistance from Ripple’s camp, particularly from the chief legal officer, Stuart Alderoty, who firmly argued that the fine should not surpass $10 million.
In a recent development, Ripple’s legal team has reinforced its stance by drawing parallels between its case and the lawsuit involving Terraform Labs, a defunct cryptocurrency firm that agreed to a $4.47 billion fine for fraudulent activities. Ripple’s lawyers argued that based on precedents where civil penalties ranged from 0.6% to 1.8% of the defendant’s gross revenue, a fair fine for Ripple would indeed be close to the $10 million mark, highlighting the absence of direct fraud allegations in Ripple’s scenario, unlike Terraform’s confirmed securities fraud involvement.
Amidst this legal skirmish, Ripple’s CEO Brad Garlinghouse harbors optimism for a resolution by summer 2024, despite acknowledging the potential for procedural delays. This optimism is somewhat echoed by American lawyer Jeremy Hogan, who speculates a possible settlement in which Ripple might agree to a $100 million penalty. Throughout 2023, Ripple has managed to secure three partial court victories, an endeavor that buoyed XRP’s price significantly each time. The digital currency community keenly watches this space, as a conclusive win for Ripple could not only redefine regulatory boundaries for crypto-assets but also impel another notable surge in XRP’s market price.
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