Ripple’s legal battle with the SEC has seen a new development today as the regulator has decided to reduce its hefty fine. In response to this news, Ripple CLO Stuart Alderoty decided to give his opinion on this decision.
Recent developments in the lawsuit
In the ongoing saga of Ripple Labs versus the US SEC, Ripple Chief Legal Officer Stuart Alderoty recently commented on the regulatory body’s latest filings. This follows a week of major updates, including a major settlement involving Terraform Labs. Ripple Labs has taken a strong stance against the SEC’s demands, arguing that the size of the fines is disproportionate to the volume of transactions involved.
A shift in the SEC’s position
The SEC recently filed a response opposing Ripple’s reasoning. Interestingly enough, however, the SEC has decided to lower its previous request of $2 billion to approximately $102 million. This change comes amid claims from Ripple that their sales of XRP have not caused any harm to investors, further highlighting the legal status of XRP as previously ruled by Judge Analisa Torres.
Analysis of the SEC’s reduced requirements
Ripple Labs’ notice took advantage of the SEC’s recent settlement with Terraform Labs, a company on the brink of bankruptcy, to argue against the $2 billion fine imposed on them. The SEC responded, emphasizing that the Terraform agreement was modified due to the company’s financial status. However, this recognition by the SEC has led Alderoty to argue that their reduced demand for Ripple shows inconsistency and potential bias against Ripple’s operational success.
Community expectations and responses
Anticipation surrounding the final judgment on the proposed reparations was intense. Ripple’s position remains one of defiance, supported by Alderoty’s comments underscoring that Ripple is thriving and there have been no casualties in their XRP sales. The $102 million figure now being put forward is seen by many in the community as a more pragmatic and feasible solution, in stark contrast to the SEC’s initial ambition of $2 billion.
Conclusion
As the legal battle moves closer to resolution, the SEC’s drastic reduction in demands marks a pivotal moment in the case. Ripple’s robust defense, combined with the court’s previous clarification on the status of XRP, positions the company strongly. Going forward, the final decision on this fee will be critical for both Ripple and the broader crypto industry, potentially setting important precedents for future regulatory obligations.
Source: https://cryptobenelux.com/2024/06/16/ripple-clo-reageert-op-verlaagde-boete-vanuit-sec/
