Ripple Formally Challenges SEC’s $2 Billion Penalty in Continuing XRP Case
The blockchain firm is contesting the nearly $2 billion fine imposed for selling XRP tokens on the Ledger, advocating for a reduced penalty
The blockchain firm is contesting the nearly $2 billion fine imposed for selling XRP tokens on the Ledger, advocating for a reduced penalty and highlighting its significant consequences for the sector.
Ripple Challenges SEC’s $1.95 Billion Fine as Excessive, Cites Legal Precedents
Ripple is contesting the SEC’s demand for a $1.95 billion disgorgement and civil penalty, deeming it excessive and an overextension of regulatory power. This dispute follows a judicial decision that established Ripple’s breach of U.S. securities laws through its institutional XRP sales, although the court dismissed claims related to exchange and algorithmic sales.
Ripple’s legal team argues that the SEC’s proposed sanctions disregard legal precedents established by the Supreme Court and appellate courts. They highlight the stark discrepancy between the SEC’s substantial penalty request and the typical $10 million cap, noting it exceeds precedents by over twenty times.
In its defense, Ripple provided a thorough breakdown of its financial dealings, including revenues from institutional sales, taxes paid, and incurred losses, challenging the assertion that it gained undue profits. The firm also noted the absence of any allegations or evidence of reckless or fraudulent behavior in its operations.
As the case progresses, Ripple remains optimistic about achieving a just resolution and maintains its dedication to thorough legal scrutiny. The outcome of this lawsuit is anticipated with keen interest by the cryptocurrency industry, as it may greatly influence future U.S. regulations on digital assets.
The price of XRP is currently consolidating and there is a possibility of further upside movement shortly.
XRP’s price is currently experiencing consolidation, with indicators suggesting potential for an upward trend soon. This week, XRP has enjoyed a 6% increase, outperforming the general altcoin market, with a recent high of $0.56.
This rise corresponds with a 3.1% growth in the number of wallets holding at least 1 million XRP, nearing a record high in wallet count.
Investor confidence in XRP is growing as it overcomes key resistance levels, indicating a strong and expanding user base which bodes well for its future market performance.
On the weekly chart, the cryptocurrency appears to be in a bullish phase of consolidation, as noted by trader Anbessa.
He suggests, “This small range is still 8 months potential consolidation, although I think it will happen much sooner,” highlighting the possibility of significant movement in the near term.
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