Analyzing the Contentious $1.95 Billion Remedial Request in the Ripple vs. SEC Case

The crypto community has expressed backlash against the recent remedy request made by the U.S. Securities and Exchange Commission (SEC) in the legal battle with Ripple Labs. The SEC is demanding a massive $1.95 billion in fines and penalties from Ripple, a move that has been criticized by XRP enthusiasts as an excessive exercise of regulatory power.

On March 22, the SEC filed a court document demanding that Ripple Inc. pay $1.95 billion in fines and penalties. This amount is significantly higher than the $728.9 million that Ripple allegedly gained from its unregistered securities offering through XRP institutional sales between 2013 and 2020.

Members of the XRP community have expressed their discontent with the SEC’s request, seeing it as a sign of bias against Ripple. J. W. Verret, a law professor, pointed out the substantial difference between the SEC’s demand and similar cases involving other entities. While the SEC typically aims for an 11% recovery in such cases, its request for a 300% recovery from Ripple has raised eyebrows.

Australian lawyer Bill Morgan has also criticized the SEC’s demand, calling it an abuse of regulatory power. Morgan believes that the SEC’s strong opposition to Ripple’s resistance is driven by its desire to control the crypto industry for an extended period of time.

Despite Ripple’s victories in the case, such as the court ruling that XRP is not a security and the dropping of charges against its executives, the legal battle continues. The outcome of the SEC’s remedy request remains uncertain, as Ripple is expected to file its opposition later this month.

The court’s decision on the SEC’s demand could have significant implications for Ripple and the wider crypto industry. Meanwhile, Ripple’s venture into the stablecoin sector has been overshadowed by the ongoing legal proceedings, contributing to market uncertainty surrounding XRP.