According to CryptoPotato, the legal dispute between Ripple and the US Securities and Exchange Commission (SEC) continues to evolve with the resignation of the SEC’s Chief of Crypto Asset and Cyber Unit, David Hirsh. This development comes as the lawsuit enters its trial phase. Hirsh, who had been with the SEC for nearly a decade, dismissed rumors that he would join pump.fun, a Solana-based marketplace.
The SEC initially proposed a $2 billion fine on Ripple, accusing it of conducting an unregistered securities offering by selling its XRP token. Ripple, however, argued that the fine should not exceed $10 million. The company cited the SEC's case against Terraform Labs, which agreed to pay a $420 civil penalty for fraudulent actions, as a precedent. Ripple also noted that there are no direct allegations of fraud in its lawsuit against the SEC.
In response, the SEC revised its proposed fine to $102.6 million. The regulator argued that the penalty in the Terraform settlement, when compared to the gross profit of the violative conduct, was significantly higher at 11.7%. Applying this ratio to the $876.3 million in gross profits that the SEC is asking the court to disgorge from Ripple, results in the $102.6 million penalty.
The outcome of the lawsuit could significantly impact XRP’s price. Some analysts predict a bull run if Ripple emerges victorious. However, the resolution of the legal battle is still pending, with both parties having submitted necessary data and complied with court rules over the past few months. The case is now awaiting the judge’s ruling.