Written by 5:26 pm Featured, Features, Fintech/Cryptocurrency, News Views: 32

Ripple Mounts Staunch Defense Against SEC’s Proposed $2 Billion Penalty in XRP Case

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In a defiant move, Ripple Labs has filed a robust opposition to the staggering $2 billion penalty sought by the U.S. Securities and Exchange Commission (SEC) according to bitcoin.com in the ongoing XRP case. The crypto firm vehemently rejected the regulator’s “draconian remedial requests,” asserting that they lack legal or principled grounding.

The SEC’s unprecedented demand for a multi-billion-dollar fine emerged in March when the securities watchdog urged the court to impose a final judgment against Ripple totaling nearly $2 billion. However, Ripple remains steadfast in its conviction that the SEC’s request is unjustified and should be rejected outright.

Ripple’s Chief Legal Officer, Stuart Alderoty, took to social media platform X (formerly Twitter) to underscore the company’s stance, stating, “In a case that had no allegations (or findings) of recklessness or fraud, and in which Ripple won on significant issues, the SEC’s ask is just more evidence of its ongoing intimidation against all of crypto in the U.S.”

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The crypto firm’s legal team contends that the court’s ruling has provided much-needed clarity and guidance on the permissible ways for Ripple to distribute XRP tokens. “This Court’s ruling has provided welcome clarity and guidance about the ways in which Ripple can lawfully distribute XRP,” the filing asserts, adding that the company “has every intent of adhering to that guidance in the future and every incentive to do so.”

In a scathing rebuke, Ripple’s opposition argues, “The SEC’s draconian remedial requests are ungrounded in law or principle. This court should reject them in their entirety.”

The filing comes on the heels of a significant development in the crypto regulatory landscape, as two SEC lawyers resigned after a federal judge sanctioned the agency for abusing its power against crypto firm Debt Box.

Ripple CEO Brad Garlinghouse seized the opportunity to highlight the SEC’s problematic policies, stating on X, “Feels apropos that we file our response on the same day that 2 SEC lawyers ‘resign’ for their (mis)conduct in the Debt Box case… The U.S. will be picking up the pieces of the agency’s disastrous policies long after [SEC Chair Gary] Gensler is gone.”

As the legal battle between Ripple and the SEC continues to unfold, the crypto firm’s resolute opposition to the proposed $2 billion penalty sets the stage for a high-stakes showdown, with far-reaching implications for the future of cryptocurrency regulation in the United States.

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