Ripple Labs is contesting the U.S. Securities and Exchange Commission’s (SEC) proposed fine of nearly $2 billion in its ongoing lawsuit.
Court Ruling and Rebuttal:
A court previously found Ripple violated securities laws through institutional XRP sales, but dismissed broader SEC claims. Ripple argues the SEC’s proposed penalty is excessive and requests a maximum civil penalty of $10 million.
SEC’s Proposed Penalty:
The SEC seeks a total of $1.95 billion, comprising $876 million in disgorgement, $198 million in prejudgment interest, and an additional $876 million civil penalty.
Ripple’s Arguments:
Ripple refutes the SEC’s disgorgement request, claiming it has no ill-gotten gains to return due to the dismissed claims and redacted financial information. Additionally, they argue the proposed penalty far exceeds any previous SEC case involving digital assets.
The Future of the Lawsuit:
The ongoing legal battle between Ripple and the SEC is likely to continue. This dispute over the appropriate penalty highlights the complexities of cryptocurrency regulation in the United States.
This revision shortens the article and uses a more neutral tone, avoiding language that might favor either party in the lawsuit.
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