Ripple's top legal executive has pushed back against the U.S. Securities and Exchange Commission (SEC) following the cryptocurrency company's offer to cap its fine at no more than $10 million. The legal officer underscored that the SEC is "furious" and stressed that, unlike the Terraform Labs case, there are no harmed parties to compensate in Ripple's situation.
In response to the SEC's accusations against the cryptocurrency firm, Ripple's chief legal officer, Stuart Alderoty, has made a public statement. This came after Ripple proposed to decrease its penalty in the legal dispute over XRP to a maximum of $10 million, a significant reduction from the SEC's initial request for $2 billion. Ripple's rationale for this reduction is compared to the Terraform Labs case.
Alderoty shared on the social media platform X that the SEC is furious because Ripple has defended itself without giving in to any demands. He pointed out that the court has clarified that XRP is not considered a security under certain circumstances and highlighted that there is no need for compensating victims.
The SEC, in a letter to District Judge Analisa Torres on Friday, argued that the Ripple-XRP case is distinct from the Terraform Labs case. The securities watchdog noted that Terraform Labs agreed to various conditions, including promptly returning funds to victims, while Ripple has not agreed to similar terms. "Ripple is not accepting any of these provisions - in fact, Ripple is not accepting anything," the SEC informed the district judge. As a result, the agency is now requesting $102.6 million from Ripple.
Initially, the securities regulator sought a $2 billion penalty in its ongoing legal battle with Ripple, which began in December 2020. The SEC alleges that Ripple raised $1.3 billion through the sale of XRP tokens, which it claims are unregistered securities. However, in a significant ruling in July 2023, Judge Torres determined that XRP is not a security when traded to retail investors on digital asset exchanges.
What are your thoughts on the SEC's position on Ripple and the reduced penalty demand compared to the original $2 billion? Feel free to share your viewpoints in the comments below.