Ripple vs. SEC: SEC Pursues Penalties, Seeking a $2 Billion Fine against Ripple

In a surprising turn of events, the U.S. Securities and Exchange Commission (SEC) has revealed its proposed remedies in the case against Ripple Labs. According to James K. Filan, a prediction that has now come true, the SEC is seeking a massive $2 billion penalty from Ripple Labs as compensation for damages incurred. Stuart Alderoty, Ripple’s Chief Legal Officer, has also voiced his thoughts on the matter.

The SEC’s proposed penalty of $2 billion is in relation to the alleged sales of the cryptocurrency XRP by Ripple Labs. While the official release of the SEC’s brief was expected on March 26th, the news was actually brought to light by Stuart Alderoty’s post on X. Alderoty expressed disbelief at the SEC’s demand, stating, “As you will see when the SEC’s brief is made public tomorrow, they ask the Judge for $2B in fines and penalties. Our response will be filed next month, but as we all have seen time and again, this is a regulator that trades in statements that are false, mischaracterized and designed to mislead.”

If the proposed $2 billion penalty is enforced, it would have a significant impact on the regulatory landscape surrounding cryptocurrencies.

The legal battle between Ripple Labs and the SEC has been ongoing since December 2020, when the SEC accused Ripple and its executives of violating federal securities laws. However, it seems that the end of the case is still far off, as we will have to wait another month for Ripple’s response to the SEC’s remedies brief. Only then, perhaps, will the hearing for the remedies phase commence.

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Ripple (XRP)