Big Day for Ripple v. SEC Lawsuit: Important Developments Ahead of Trial
TL;DR
- Ripple has contested the SEC’s request for a $2 billion fine related to XRP sales, asserting that most transactions were lawful and informed, proposing a maximum penalty of $10 million instead.
- The case is progressing to a critical trial that could impact XRP’s price and the wider cryptocurrency market.
Ripple Opposes the SEC’s Multi-Billion Request
The legal spat between Ripple and the United States Securities and Exchange Commission (SEC) is heating up, with numerous actions coming from both parties. Nearly a month ago, the regulator sought a $2 billion fine on the company, alleging XRP sales violations.
Ripple’s management team, including CEO Brad Garlinghouse and CLO Stuart Alderoty, did not welcome the proposal with open arms, arguing that the SEC “trades in statements that are false, mischaracterized, and designed to mislead.”
Alderoty recently revealed that Ripple filed its opposition to the agency, claiming the firm remains “confident” that the magistrates “will approach this final remedies phase fairly.” The company named several essential reasons why the penalty should not exceed $10 million.
First, it claimed that there is no allegation that Ripple deceived or misled individuals and entities who purchased XRP years ago:
“Those entities were fully informed about the transactions into which they were entering and chose to do so in their own financial interests.”
Second, Ripple insisted most of its XRP transactions were lawful and did not act with scienter. The firm also maintained it caused no substantial financial losses and that the SEC can’t prove the opposite.
“Finally, the SEC errs in suggesting (at 24)that Ripple’s total assets warrant a massive fine. The SEC regularly imposes far smaller fines to deter misconduct by the largest corporations in the world,” the opposition concluded.
It’s Trial Day
Ripple’s reply came shortly before the start of the final phase of the lawsuit between the company and the US SEC, which should decide the outcome of the lengthy legal battle. The grand trial is scheduled to begin today (April 23), and some believe the firm enters with the upper hand since it secured three partial court wins last year.
The resolution of the case could have a major impact on XRP’s price, possibly triggering a bull run (in the event of a decisive victory for Ripple). The opposite scenario, though, might cause a setback for the entire cryptocurrency industry and lead to the implementation of stringent rules.
Those willing to learn more about the lawsuit and how it may affect XRP’s price movements, feel free to take a look at our dedicated video below:
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