The post Ripple vs SEC: Ripple To File Response on SEC’s $2Bn Penalty Demand Today, on April 22 appeared first on Coinpedia Fintech News
Ripple’s long-standing legal battle with the United States Securities and Exchange Commission is entering its final phase. The outcomes from this case could have a significant impact on the cryptocurrency industry, with potential ramifications for the price of XRP, Ripple’s native token.
This week, especially today, April 22, 2024, is of high importance in the case as defendants – Ripple Inc. will submit its response to the SEC’s demand for fines and penalties totalling $2 billion, a demand of US regulators that has attracted significant criticism from the crypto community.
Ripple’s Opposition Brief and Key Legal Arguments
Ripple’s opposition brief, due to be filed on April 22, 2024, is expected to address the SEC’s claims from its opening brief of the remedies-related filing, where the SEC demanded nearly $2 billion in fines and penalties for alleged securities violations involving institutional sales of XRP.
We’ll still have 2 days to wait to know Ripple’s official response to it as the opposition’s brief will remain sealed until April 24, when a redacted version will be made public.
After filing the brief, Ripple and the SEC shall meet to discuss necessary redactions before the document becomes publicly accessible. As per the revised Court order, the SEC is given time until May 6 to file its reply.
SEC’s Stance and Ripple’s Response
The SEC’s demand for substantial penalties, even in a case without allegations of fraud or recklessness, has drawn criticism from Ripple’s executives.
Ripple’s Chief Legal Officer, Stuart Alderoty, criticised the US regulators last month on X, stating, “Rather than faithfully apply the law, the SEC remains bent on wanting to punish and intimidate Ripple – and the industry at large.” He continued, “We trust the Court will approach the remedies phase fairly.”
We trust the Court will approach the remedies phase fairly. 4/4
— Stuart Alderoty (@s_alderoty) March 25, 2024
Ripple’s CEO, Brad Garlinghouse, voiced similar sentiments noting that the SEC’s demand of nearly $2 billion is unprecedented, especially in a case devoid of fraud. He wrote, “Gensler’s SEC has repeatedly acted outside the law.”
Garlinghouse emphasized that the SEC’s actions are a “gross abuse of the power entrusted to it by Congress,” and that Ripple would continue to challenge the SEC’s approach.
Gensler’s SEC has repeatedly acted outside the law – not going unnoticed by Judges admonishing the agency for a "gross abuse of the power entrusted to it by Congress" (DEBT Box case) and for acting without "faithful allegiance to the law" (Ripple case). Let’s not also forget… https://t.co/vay6WDBfJc
— Brad Garlinghouse (@bgarlinghouse) March 25, 2024
Impact on XRP Price
The outcome of the Ripple vs. SEC case could significantly affect the cryptocurrency industry, especially Ripple’s native token XRP.
XRP’s price has shown volatility, with a recent rally past $0.50, driven by expectations surrounding Ripple’s response to the SEC’s demand for $2 billion in fines.
If Ripple is successful in its opposition brief, it could lead to a reduction in the fines and penalties, potentially boosting XRP’s price. Ripple’s partial victories in 2023 led to notable increases in the price of XRP, and a favourable outcome could have a similar effect.
Conversely, if the SEC’s penalty demands are upheld, it could lead to stricter regulations across the industry, dampening investor confidence and slowing the advancement of cryptocurrencies.
As the remedies stage approaches, Ripple’s response to the SEC’s penalty demand on April 22, today, will be crucial in determining the case’s outcome. All eyes are on the court’s decision and its potential impact on the future of XRP and the broader cryptocurrency market.
