- The US Securities and Exchange Commission (SEC) has targeted Ripple’s new stablecoin project in its latest lawsuit against the company.
- The SEC has requested a preliminary injunction from the court against Ripple, alleging that the planned token is an “unregistered crypto asset”.
- The regulatory body has also proposed a hefty penalty of nearly $2 billion for Ripple to deter the company and other imitators.
The SEC has targeted Ripple’s new stablecoin project in its latest lawsuit, requesting a preliminary injunction and proposing a hefty penalty of nearly $2 billion.
SEC Targets Ripple’s New Stablecoin Project
In its latest lawsuit against Ripple, the US Securities and Exchange Commission (SEC) has targeted the company’s new stablecoin project. In a redacted solution response summary dated May 7, the SEC described the planned token as an “unregistered crypto asset”. The regulatory body has also requested a preliminary injunction from the court against Ripple.
SEC Requests Preliminary Injunction Against Ripple
The SEC’s application notably does not explicitly mention a “stablecoin”. Instead, it refers to a press release dated April 4, in which Ripple announced its intention to issue a stablecoin. However, since that date, the company has not provided further details about the token. The SEC is requesting a preliminary injunction from the court, arguing that this proposed stablecoin is further evidence that Ripple will continue to engage in unregulated activities unless a permanent injunction is issued.
SEC Proposes Hefty Penalty for Ripple
The SEC is also proposing a hefty penalty for Ripple to deter the company and other imitators. In this context, the regulatory body is seeking nearly $2 billion in fines from Ripple. However, the crypto firm argues that the court should reject this request, proposing a civil penalty of no more than $10 million. Meanwhile, the company has been selling over $100 million worth of XRP each month for years. Therefore, according to the SEC, each month’s sales are more than ten times the total penalty proposed for Ripple’s 11 years of operation.
Conclusion
The SEC’s latest lawsuit against Ripple highlights the ongoing regulatory challenges facing the crypto industry. With the SEC targeting Ripple’s new stablecoin project and proposing a hefty penalty, the outcome of this case could have significant implications for other crypto companies. As the regulatory landscape continues to evolve, companies must navigate these challenges while continuing to innovate and grow.
