Ripple has countered the Securities and Exchange Commission (SEC)’s demand for a $2 billion penalty, filing an opposition challenging the proposed fines. Revealed by Ripple’s defense attorney, James Filan, the motion argues that the SEC’s penalties are excessively harsh and suggests a reduced penalty of $10 million instead.
Ripple’s Legal Battle with SEC Over Heavy Fines
The filing underscores Ripple’s stance that the SEC’s $2 billion penalty request does not align with the case’s actual circumstances. It highlights that there were no allegations or findings of reckless behavior or fraud, which would typically warrant such steep financial penalties.
Ripple clarifies that while it did engage in XRP sales, these transactions were transparent and involved knowledgeable institutional investors fully aware of the details.
Moreover, Ripple points out significant legal victories achieved throughout the litigation, suggesting that the SEC’s demands are inconsistent with court findings, which could weaken the SEC’s position.
Ripple’s Chief Legal Officer, Stuart Alderoty, characterizes the SEC’s request as further evidence of its intimidating stance against the cryptocurrency sector in the U.S.
Proposed Lower Penalty and Legal Process
In contrast to the SEC’s demand, Ripple proposes a much lower penalty of $10 million, arguing that it better reflects the alleged violations and the company’s actual conduct. Ripple contends that this amount adequately serves legal interests without being disproportionately punitive.
The legal process is progressing, with the SEC’s reply brief due on May 6, 2024, according to Filan. The court will review Ripple’s opposition and the SEC’s proposals, ultimately deciding on penalties, led by Judge Analisa Torres.
Alderoty expresses confidence in the judge’s fair approach during this final phase of the legal proceedings.
XRP Price Reaction
Following the filing announcement, XRP’s price has experienced a slight increase, currently trading at $0.5464 according to CoinMarketCap, up by 1.6%, with a peak at $0.5687 post-announcement.
