• Thu. May 30th, 2024

Ripple Turns Down SEC’s Proposed $2 Billion Fine, Causes Uproar

Maria Bartiromo

ByMaria Bartiromo

Apr 25, 2024

Ripple Labs is preparing to contest a possible $2 billion fine levied by the United States Securities and Exchange Commission (SEC). Among the claims linked to the fine are $876 million in compensatory damages, $198 million in interest on that sum, and an additional $876 million in civil penalties.

Public opinion is shifting in favor of Ripple as the legal struggle continues, with many people opposing the SEC’s tough approach toward the cryptocurrency industry. Recall, the SEC I filed a lawsuit against Ripple in December 2020, claiming that the company had engaged in unlawful securities offerings and that XRP was an unregistered security.

Ripple has continuously refuted the SEC’s allegations, claiming that the SEC went too far in its investigation. Executives of Ripple, including CEO Brad Garlinghouse, have publicly stated that they plan to defend the company against the SEC’s accusations strongly.

Ripple Adopts More Lethal Legal Approach, Goes Counteroffensive

The SEC’s approach has its detractors who claim that because of the agency’s unclear and inconsistent actions, there is confusion in the larger bitcoin market. XRP’s price dropped to $0.42 during the cryptocurrency market crash on April 11, which caused the company a huge loss in value.

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The cryptocurrency has begun to show signs of life since then; as of April 24, it was trading at $0.55, indicating a 30% increase. This rebound has increased trust among XRP holders and enhanced Ripple’s position in its legal dispute with the SEC. Ripple has started a counteroffensive in reaction to the SEC’s $2 billion penalties, exposing the agency’s contradictions in its approach to cryptocurrency regulation and contesting its assertions.

To show that the SEC has handled other cryptocurrencies differently, Ripple’s legal team has asked for papers from the agency and filed moves to dismiss some aspects of the SEC’s lawsuit. Ripple’s legal approach is centred on weakening the SEC’s case by highlighting the agency’s ambiguous definition of security about cryptocurrency.

Ripple’s Chief Legal Officer Reacts, As Cryptocurrency Community Backs Ripple

The public has overwhelmingly backed Ripple’s effort to contest the SEC’s $2 billion fine, and many see the company’s defiance as a catalyst for more transparent regulations in the cryptocurrency space.

On his X handle, Ripple’s Chief Legal Officer, Stuart Alderoty, commended Ripple’s position, pointing out that the case lacks substance and traces of financial fraud or recklessness. Alderoty suggested that the request by the SEC is part of a more comprehensive method of intimidating the United States cryptocurrency industry.

However, the online XRP community has expressed their opinions on the ongoing legal tussle, insisting that the SEC is out to frustrate the company. Amid the reopening of the XRP case, XRP’s total trading volume has dropped by $900 million in a week, hence highlighting a possible market correction as it revolves around the $0.50  price mark in later days.

Ripple Reassures its Commitment to Maintaining Professional Etiquette, Reviews Operation

Ripple management has maintained that it is leaving no stone unturned while addressing some concerns the United States court and SEC have pointed out. The company said it is willing to work with the government and in line with the stipulated laws to make sure those concerns are met.

However, Brad Garlinghouse, the current Ripple CEO, has also remarked on Stuart’s claim, warning of a prolonged implication of strict policies and actions by the SEC. Ripple stated that it had reviewed its modus operand on the sale of XRP as mandated by the court, ensuring it complies with the required regulation as required by both local and international laws.

XRP faces a price resistance level, hovering between $0.58 and $0.57, heading towards the moving average. To maintain this recovery momentum, the bull must exceed the supply zone. The XRP would move towards the $0.60 price mark should it successfully break this trend; it is also expected to move towards the $0.70 psychological barrier, representing a  28% price rise.

Maria Bartiromo

Maria Bartiromo

Maria Bartiromo is a renowned news writer and journalist, celebrated for her insightful reporting and authoritative voice. With a career spanning years, she has established herself as a trusted source of accurate and comprehensive news analysis, keeping readers informed on vital global developments.

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