The ongoing legal clash between Ripple Labs and the US Securities and Exchange Commission (SEC) shows no signs of abating, as the SEC remains steadfast in its position regarding Ripple’s attempts to negotiate the fines imposed for the XRP sales. Ripple, accused of selling $1.3 billion in unregistered securities since 2020, argues that the penalties are unduly severe compared to similar cases.
In a recent move, Ripple sought to persuade the SEC to reconsider the $2 billion fine by drawing parallels with the Terraform Labs case. However, the SEC pointed out significant disparities between the two cases, noting that while Terraform had agreed to substantial relief measures, Ripple had not made any comparable concessions.
Ripple proposed that its fines should not exceed $10 million, based on a percentage comparison with Terraform’s gross sales. Nevertheless, the SEC dismissed this argument, citing differences in gross profit margins and suggesting that a similar calculation for Ripple would result in a much higher fine of approximately US$102.6 million.
Ripple swiftly responded to the SEC’s stance, with its chief legal officer, Stuart Alderoty, asserting that “the court clarified that XRP is not a security.” He highlighted Ripple’s resilience in the face of the SEC’s demands and emphasized that no victims necessitate compensation.
This legal battle underscores the intricate regulatory landscape surrounding cryptocurrencies and underscores Ripple’s efforts to mitigate the impact of sanctions while challenging the SEC’s accusations. The outcome of this dispute will have significant implications for the crypto industry.
Disclaimer: The opinions expressed in this article are for informational purposes only and do not constitute financial advice. Investing in cryptocurrencies carries inherent risks of financial loss.
