⏰ Act Early, Profit Big!
Be among the first to access the newest altcoins. Don't miss out, click now!

Ripple Labs Challenges SEC’s $2 Billion Penalty for XRP in Light of Terraform Case Settlement

  • Ripple Labs has raised concerns about the Securities and Exchange Commission’s (SEC) proposed penalties.
  • The company points to the $4.5 billion Terraform Labs settlement as a benchmark for arguing for a reduced penalty.
  • Ripple’s letter to the SEC highlights what it perceives as inconsistencies and calls for a fairer judgment.

Ripple Labs challenges the SEC’s proposed $2 billion penalty, comparing it with the recent Terraform Labs settlement to argue for a more reasonable amount.

Ripple vs. SEC: An Ongoing Legal Battle

The legal conflict between Ripple Labs and the SEC has been making headlines since late 2020. The SEC alleges that Ripple Labs and its executives, including CEO Brad Garlinghouse and co-founder Christian Larsen, engaged in the sale of unregistered securities via the XRP token. At the core of this battle is the classification of XRP as a security, which Ripple vehemently denies.

Comparing Penalties: Ripple’s Argument

Earlier this year, the SEC suggested a staggering $2 billion penalty for Ripple Labs. This figure comprises $876 million in disgorgement, $198 million in prejudgment interest, and an additional civil penalty of $876 million. In a recent letter, Ripple’s legal team introduced new evidence, citing the recent Terraform Labs case as a more fitting benchmark. Terraform Labs, accused of causing a $40 billion investor loss, faced a total settlement of just over $4 billion. According to Ripple, the penalties in the Terraform case — 1.27% of its $33 billion gross sales — should guide the calculation of penalties in similar cases.

SEC’s Inconsistent Penalty Calculations

Ripple’s lawyers argue that the SEC’s proposed penalties for them are disproportionately high compared to other cases, such as Terraform Labs. In its letter, Ripple highlights that the SEC has historically agreed to penalties ranging between 0.6% and 1.8% of the defendants’ gross revenue in similar cases. Given the absence of fraud allegations and minimal institutional losses in the Ripple case, the company argues that the SEC’s proposed fine is excessively punitive.

The Broader Implications of the Penalty Debate

The public reaction to this dispute has been significant, drawing attention to the SEC’s approach to regulating the rapidly evolving crypto sector. Stephen Alderoty, Chief Legal Officer of Ripple, has publicly criticized the SEC for what he describes as its pursuit of media attention over sound regulatory policy. He referenced the SEC’s role in the BlockFi case, suggesting that the agency is more focused on publicity than on achieving fair and effective outcomes.

Ripple’s Market Position and Future Prospects

Despite its legal challenges, Ripple’s market performance has remained resilient. Since the SEC lawsuit’s inception, XRP’s market capitalization has grown from $20.7 billion to $26 billion. However, the competitive landscape has shifted, with other digital assets like Tether, BNB, Solana, and USDC climbing the ranks. As XRP currently stands as the eighth-largest cryptocurrency, the outcome of this legal dispute could have significant ramifications for its future trajectory.

Conclusion

Ripple Labs’ battle with the SEC continues to unfold, with critical implications for both the company and the broader cryptocurrency market. By arguing for a penalty consistent with recent settlements, Ripple is positioning itself against what it views as regulatory overreach. As the case progresses, the decision will not only impact Ripple’s financial future but will also serve as a precedent for how similar cases might be treated going forward.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

Whales and Institutions Boost ETH Holdings with Over $500M in Recent Transfers

Recent data from OnchainLens reveals a notable uptick in...

Bitcoin Surges Past $119,000 with Minimal 24-Hour Decline of 0.58% on July 24

On July 24, Bitcoin demonstrated notable resilience by surpassing...

Bitcoin-Related Stocks Show Mixed Performance Amid Tesla’s Revenue Warning and Market Gains

On July 24th, US equity markets closed higher, with...

FTX Announces August 2025 Registration for Next Distribution to Bitcoin Claim Holders

On July 24, FTX disclosed via PR Newswire that...

Hyper Cuts ETH Long Position by $5.98M Despite Leading Total Profit Rankings

Hyper, currently leading the total profit rankings, has strategically...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img