- The dispute between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has seen new developments recently.
- Ripple’s Chief Legal Officer, Stuart Alderoty, has highlighted that the SEC has reduced its demands significantly.
- Alderoty pointed out that the earlier $2 billion demand from the SEC has been substantially decreased.
Ripple’s legal battle with the SEC sees a twist as the regulator reduces its hefty fines. Read about Ripple CLO Stuart Alderoty’s latest comments and what this means for the cryptocurrency community.
Ripple Vs. SEC: Recent Developments and Revelations
In the continuing saga of Ripple Labs versus the U.S. SEC, Stuart Alderoty, Ripple’s Chief Legal Officer, recently commented on the latest filings from the regulatory body. This follows a week of significant updates, including a major settlement involving Terraform Labs. Ripple Labs has taken a firm stance against the SEC’s demands, arguing that the scale of the fines is disproportionate to the volume of trades involved.
A Shift in SEC’s Position
The SEC has recently filed a response opposing Ripple’s notice of Supplemental Authority. Interestingly, the SEC’s stance has softened from its prior $2 billion demand, now suggesting a settlement closer to $102 million. This change comes amid claims from Ripple that their sales of XRP have caused no harm to investors, further highlighting the security status of XRP as previously ruled by Judge Analisa Torres.
Analyzing the SEC’s Reduced Demands
Ripple Labs’ notice leveraged the SEC’s recent $4.47 billion settlement with Terraform Labs, a company on the brink of bankruptcy, to argue against the $2 billion fine imposed on them. The SEC counteracted, emphasizing that the Terraform agreement was adjusted due to the company’s financial status. However, this acknowledgment by the SEC has led Alderoty to argue that their reduced demand towards Ripple exhibits inconsistency and potential bias against Ripple’s operational success.
Community’s Anticipation and Reactions
The anticipation surrounding the final verdict on the proposed remedy payment has been intense. Ripple’s stand continues to be one of defiance, supported by Alderoty’s remarks which underline that Ripple is thriving and there have been no victims in their XRP sales. The $100 million figure now being floated is seen by many in the community as a more pragmatic and achievable settlement, contrasting starkly with the SEC’s initial $2 billion ambition.
Conclusion
As the legal battle inches closer to resolution, the drastic reduction in the SEC’s demands marks a pivotal moment in the case. Ripple’s firm defense, combined with the court’s previous clarification on XRP’s status, positions the company strongly. Moving forward, the final determination on this remedy payment will be crucial for both Ripple and the broader crypto industry, potentially setting significant precedents for future regulatory engagements.
