Ripple’s top legal executive has fired back at the U.S. Securities and Exchange Commission (SEC) in response to the accusations made against the cryptocurrency company. This comes after Ripple proposed limiting its penalty to a maximum of $10 million, a significant drop from the SEC’s initial request for $2 billion. The legal chief pointed out that, unlike the Terraform Labs case, there are no victims to compensate in Ripple’s situation.
Stuart Alderoty, Ripple’s chief legal officer, took to the X social media platform to address the SEC’s allegations. He stated that the SEC is furious because Ripple has stood its ground without giving in to any demands. Alderoty highlighted that the court has clearly stated that under certain circumstances, XRP is not considered a security and emphasized that there are no victims in need of compensation.
In a letter to District Judge Analisa Torres, the SEC argued that the Ripple-XRP case is fundamentally different from the Terraform Labs case. The regulatory body noted that Terraform Labs had agreed to various conditions, including the prompt return of funds to victims, whereas Ripple has not agreed to similar terms. The SEC informed the judge that Ripple has not agreed to any relief and is essentially refusing to cooperate, leading the agency to demand $102.6 million from the company.
The SEC initially sought a penalty of $2 billion in its ongoing legal battle with Ripple, which began in December 2020. The SEC alleges that Ripple raised $1.3 billion through the sale of XRP tokens, which the agency claims are unregistered securities. However, in a significant ruling in July 2023, Judge Torres declared that XRP is not a security when sold to retail investors on digital asset exchanges.
What is your opinion on the SEC’s position on Ripple and its reduced penalty demand compared to the initial $2 billion request? Feel free to share your thoughts in the comments below.
