When it comes to legal disputes, few battles have stirred the crypto community as much as the ongoing feud between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). The latest twist in this saga—the SEC’s demand for a massive $1.95 billion in fines and penalties—has sparked intense reactions, drawing criticism from XRP supporters who see it as an overreach of regulatory power.
SEC’s Remedies Request
On March 22, the SEC made a bold move in court, revealing its demand for Ripple Inc. to pay a staggering $1.95 billion in fines and penalties. This amount far surpasses the alleged gains Ripple made from its supposed unregistered securities offering through XRP institutional sales, totaling $728.9 million between 2013 and 2020.
The SEC’s aggressive stance hasn’t gone unnoticed by the XRP community, which has raised concerns about what they perceive as a targeted attack on Ripple. Critics argue that the SEC’s demand shows bias, especially when compared to how it handles similar cases involving other companies.
Experts Weigh In
Legal experts like Professor J. W. Verret have pointed out the stark difference between the SEC’s demand and its usual recovery targets. While the SEC typically aims for an 11% recovery, its demand for a whopping 300% from Ripple has raised suspicions of ulterior motives.
Joining the chorus of dissent, Australian-based lawyer Bill Morgan has condemned the SEC’s actions as a clear abuse of regulatory power.
Despite Ripple scoring some wins in court—including a ruling that XRP isn’t a security and the dropping of charges against its executives—the fight is far from over. With Ripple preparing to file its opposition later this month, the fate of the SEC’s demand hangs in the balance.
The court’s upcoming decision on the SEC’s demand holds significant implications not just for Ripple but also for the wider crypto world.
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