Even though the lawsuit between the two sides has not yet been resolved, the US Securities Commission (SEC) still wants to impose a fine of up to 2 billion USD on Ripple Labs.
SEC wants to fine Ripple $2 billion
According to Ripple Legal Director Stuart Alderoty, the US Securities and Exchange Commission (SEC) has sent a request to the New York court to impose a $2 billion fine on Ripple Labs.
Currently, this request is still sealed by the court but will soon be announced on March 26 (US time).
Our response will be filed next month, but as we all have seen time and again, this is a regulator that trades in statements that are false, mischaracterized and designed to mislead. They stayed true to form here. 2/4
— Stuart Alderoty (@s_alderoty) March 25, 2024
This is the latest development in the SEC's lawsuit accusing Ripple and company managers of illegally selling securities in the form of XRP, which has lasted since 2020 . However, according to a federal court ruling in July 2023, XRP cannot be XEM a security in all cases - meaning a partial legal victory for Ripple.
However, the SEC still did not accept giving up the lawsuit. The Securities and Exchange Commission then filed and rejected an appeal, then prepared for the final stage of the lawsuit by petitioning the court to impose a $2 billion fine on Ripple.
Mr. Stuart Aldetory announced that his company will continue to fight against the SEC's request to pay fines and will submit a rebuttal in April.
As reported by Coin68, the US Securities and Exchange Commission under the direction of Chairman Gary Gensler in the period 2022 - 2023 has waged a legal battle targeting the cryptocurrency industry, with arguments that securities are often use. Recently, there has been a lot of information that the SEC's upcoming target will be Ethereum , the world's second largest cryptocurrency.
The $2 billion fine against Ripple, if approved by the court, would be second only to the $4.3 billion that another cryptocurrency company, Binance, agreed to spend in November 2023 to end the lawsuit. investigation by the US Department of Justice.
The price of XRP at the time of writing is still inching up following the general recovery momentum of the cryptocurrency market, unaffected by the news that the SEC wants to fine Ripple $2 billion.
1h chart of XRP/ USDT pair on Binance at 08:15 AM on March 26, 2024
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