The SEC Rejects Ripple’s $10 Million Fine Proposal and Demands $2 Billion

The legal battle between Ripple and the SEC is intensifying, with Ripple challenging the SEC’s $2 billion demand and calling for a reduced penalty of $10 million.

The legal standoff between Ripple and the SEC is heating up as the final judgment approaches. Initiated in 2020, this case sees the SEC demanding nearly $2 billion from Ripple, an amount Ripple deems excessive. In response, the company has requested that the penalty be reduced to “no more than $10 million,” according to a petition filed last month.

Points of Disagreement Between Ripple and the SEC

The SEC disputes Ripple’s proposal, arguing that the “negligible” penalty proposed by Ripple would not be sufficient to punish its violations or deter future large-scale fundraising without the required registrations.

According to the regulator, the $1.9 billion requested is actually minimal compared to the billion dollars Ripple made by violating Section 5 of the Securities Act, and the multi-billion dollar business built around XRP sales.

Ripple, on the other hand, considers the amount in millions to be fair, referring to other crypto cases such as those of BlockFi, Genesis Global, and Block.one. However, the SEC has countered that these cases were merely settlements.

Reactions and Outlook

In a statement on X, Stuart Alderoty, legal director at Ripple, described the latest SEC submission as “more or less the same.” He expressed optimism about the imminent conclusion of this case, giving a thought for those for whom this is not the case:

The latest submissions indicate that the final judgment is imminent, but it remains uncertain what the court will decide when faced with two radically different proposals.