As a seasoned crypto investor who has closely followed the developments in the Ripple-SEC saga, I find myself growing increasingly concerned with each new turn of events. The SEC’s latest response to Ripple Labs’ argument regarding the proposed $2 billion settlement feels like a double-edged sword.
The legal dispute between Ripple Labs and the SEC took an unexpected turn as the securities regulatory body submitted its counterargument in the ongoing case. It’s important to remember that Ripple had previously criticized the SEC for imposing excessive settlement fees, as demonstrated in the Terraform Labs situation.
SEC’s response to Ripple Labs
In simpler terms, Ripple argued that since users experienced significant financial losses in the Terraform ecosystem token crash, the penalty imposed on them was relatively lighter than the fine the Securities and Exchange Commission (SEC) proposed in a case where no such losses occurred.
The Securities and Exchange Commission (SEC) has requested the court to give its approval for a proposed settlement worth $2 billion between us (SEC) and Ripple, following the alleged violation of securities laws during the sale of XRP to institutional investors by Ripple. However, Ripple is contesting this suggested penalty, asserting that they should only be required to pay a maximum of $10 million instead.
The Securities and Exchange Commission (SEC) has reiterated in its response to Ripple Labs that the regulatory body determines its charges on a case-by-case basis, which is a widely accepted practice. Although the typical settlement rate from sales proceeds amounts to 1.27%, the SEC noted that Terraform’s charges were lower due to the consideration of significant other factors.
According to the regulatory body, Terraform Labs is currently in bankruptcy and lacks sufficient funds to pay for a larger penalty. The SEC additionally noted that while Terraform Labs halted their actions causing violations, Ripple Labs persisted in engaging in similar activities that initiated the lawsuit.
Remedies decision indeterminate
The filing of Ripple Labs’ supplemental authority notice provides additional proof, but it’s up to the court to determine the proper resolution.
During the holding period, Ripple Labs has proceeded to broaden its operations through a stablecoin upgrade and a partnership with Archax. The outcome of this situation could significantly impact other cases related to the Securities and Exchange Commission (SEC) that may necessitate resolution.
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2024-06-15 13:20