- Ripple and the SEC have been locked in a heated debate over penalties in their ongoing legal battle.
- Stuart Alderoty has acknowledged the SEC’s fine reduction from $2B to $102M but has not revealed Ripple’s plans.
- Alderoty’s response suggests Ripple is ready to fight the SEC’s demands, potentially prolonging the battle.
In a recent development in the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), Ripple’s CLO Stuart Alderoty has reignited the debate over penalties with a fiery response.
No Harm, No Foul?
Alderoty’s comments come in reaction to the SEC’s latest filing regarding a proposed settlement amount. Initially, the SEC had sought a hefty $2 billion in fines and penalties from Ripple, a figure the company has consistently disputed. This amount has since been reduced to $102 million.
Taking aim at the SEC’s aggressive stance, Alderoty reportedly used the term “raging” to describe the agency’s approach. He further emphasized that Ripple, a thriving company, according to him, caused no harm, and there are no victims to compensate.
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This latest development comes after Ripple previously argued for a significantly lower penalty of just $10 million. They pointed to the absence of fraud allegations, unlike in the recent Terraform Labs case, in which the SEC secured a $4.47 billion settlement.
Does Alderoty’s Response Hint at a Protracted Battle
The SEC has pushed back against the Terraform Labs comparison. The agency highlights Terraform’s insolvency and their agreement to burn all crypto holdings and remove key personnel as factors justifying the higher settlement amount. The SEC argues a low penalty for Ripple wouldn’t achieve the desired deterrent effect.
Alderoty’s fiery response indicates a potential escalation in the legal battle. His comments suggest Ripple is unlikely to back down from its position, raising the stakes for both parties. The court’s decision on the appropriate penalty will be closely watched by the cryptocurrency industry, as it could set a precedent for future SEC enforcement actions.
On the Flipside
- Alderoty’s comments could be a negotiating tactic to pressure the SEC into accepting a smaller penalty closer to Ripple’s $10 million proposal.
- The court might impose a penalty somewhere between the SEC’s $102 million and Ripple’s $10 million, leaving both parties with some concessions.
Why This Matters
Ripple’s initial pushback against the SEC’s proposed $2 billion penalty has already resulted in a significant reduction to $102 million. Whether Ripple considers this acceptable remains to be seen. If they believe they have caused no harm and the SEC is abusing its power, they could contest even the $102 million figure and continue to fight for their proposed $10 million penalty.
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If you’re interested in the latest developments in the Ripple vs. SEC saga, you won’t want to miss this article:
SEC Lowers Settlement Offer for Ripple to $102.6 Million
For a deeper look into Ripple’s arguments regarding the Terraform Labs case comparison, check out this article:
SEC Responds Strongly to Ripple in Terraform Labs Citation
