- The U.S. Securities and Exchange Commission (SEC) has rejected Ripple’s proposed penalty of nearly $10 million, arguing it would not deter other cryptocurrency businesses from violating securities laws.
- The SEC maintains its initial demand of a $2 billion fine, stating that Ripple’s offer would be a “slap on the wrist that neither punishes nor deters” wrongdoing.
- Ripple’s chief legal officer, Stuart Alderoty, criticizes the SEC’s stance, accusing the regulator of failing to faithfully apply the law.
The SEC rejects Ripple’s proposed penalty in a long-standing legal battle, arguing that the nearly $10 million fine would not deter other cryptocurrency businesses from violating securities laws.
SEC Rejects Ripple’s Proposed Penalty
The U.S. Securities and Exchange Commission (SEC) has rejected Ripple’s proposed penalty of nearly $10 million in a long-standing legal battle. The regulator argues that such a penalty would not deter other cryptocurrency businesses from violating Section 5 of the Securities Act, which requires issuers to file a registration statement when publicly offering securities.
SEC Maintains $2 Billion Fine Demand
The SEC maintains its initial demand of a $2 billion fine, stating that Ripple’s offer would be a “slap on the wrist that neither punishes nor deters” wrongdoing. The regulator further argues that Ripple’s proposed penalty would encourage other crypto asset issuers to violate Section 5 by making it a remarkably lucrative endeavor, thus depriving investors of the disclosures Congress mandates.
Ripple’s Chief Legal Officer Criticizes SEC’s Stance
Stuart Alderoty, Ripple’s chief legal officer, has criticized the SEC’s stance, accusing the regulator of failing to faithfully apply the law. In a recent Twitter post, Alderoty slammed the SEC for trying to “pull the wool over the Judge’s eyes”.
Conclusion
The SEC’s rejection of Ripple’s proposed penalty marks another chapter in the ongoing legal battle between the two parties. As the case continues, the outcome could have significant implications for the cryptocurrency industry and the regulation of digital assets. Stay tuned for more updates on this developing story.
