San Francisco-based company Ripple has filed an objection against the resolution proposed by the US Securities and Exchange Commission (SEC). Last month, the SEC requested precautionary measures, penalties, and the distribution of profits in the Ripple case. The company, best known for its association with the XRP cryptocurrency, could be forced to pay $2 billion.
What Did the SEC Say About Ripple?
In its proposal, the SEC argued that the reckless nature of the company’s behavior and repeated violations of securities laws justified such an exorbitant amount. The penalties imposed are expected to deter Ripple and other industry players from disregarding the laws in the future.
However, in its latest filing, SEC argues that the company must provide evidence that it will violate the laws again in the future. Ripple also defends its corporate sales by referring to interactions with other US regulators and regulatory actions in other major jurisdictions, claiming they did not “recklessly disregard” the law.
Emphasis on the Precautionary Measure Decision
The company claims that any precautionary measure must be “narrow and specific.” According to Ripple, the SEC cannot demonstrate that its corporate sales caused any “material damage,” thus no compensation is necessary. Regarding the fine, the company claims it should not exceed $10 million. Ripple’s application states, “The Court should reject the SEC’s requests for precautionary measures, compensation, and pre-trial interest and should impose a fine not exceeding $10 million.”
Ripple‘s response to the SEC’s request comes at an appropriate time. Bloomberg reported yesterday that two SEC lawyers had to resign after a federal judge punished the regulatory body for abusing its authority in the DEBT Box case. The lawyers misrepresented some key facts in order to obtain a temporary restraining order against a Utah-based crypto company.
When Gensler Leaves
Ripple CEO Brad Garlinghouse stated on the X social media network, “The US will painfully face the consequences of the institution’s disastrous policies long after Gensler has gone.”
Ripple’s battle with the SEC is being closely watched in the cryptocurrency world. The company’s future and the SEC’s decision on this matter could significantly impact the cryptocurrency markets. The price of XRP was $0.55 at the time of writing.
