‘Ripple is well-positioned to pay a significant civil penalty,‘ says SEC
The SEC's proposed $1.95 billion fines and penalties for Ripple indicate a need for stronger incentives to halt its legal violations, rather than treating penalties as merely a cost of business. In contrast to Ripple's executives' assertions, the SEC emphasizes Ripple's defiance of the law, particularly its continued sale of XRP despite warnings. The SEC's proposal, outlined in a filing on March 25 in a New York district court, includes disgorgement, prejudgment interest, and a civil penalty totaling roughly $1.95 billion. The regulator deems these penalties appropriate due to Ripple's significant unregistered sales of XRP over the past three years, emphasizing the need for deterrence and ensuring penalties are more than just a business expense for securities law violators, as established by the Second Circuit.
