Ripple vehemently denies the SEC’s proposed $2 billion fine for allegedly offering unregistered securities in XRP tokens. Despite the ongoing legal battle, Ripple’s CEO is hopeful for a resolution by September 19.
The legal dispute between Ripple and the SEC has entered a critical phase, with Ripple contesting the proposed fine and advocating for a reduced penalty. The disagreement stems from Ripple’s alleged unregistered securities offering of XRP tokens, a contentious issue that has been ongoing for three years.
Earlier this year, the SEC imposed a $2 billion fine on Ripple, which the blockchain company vehemently opposed. Ripple’s chief legal officer argued for a maximum fine of $10 million, highlighting differences between their case and TerraForm Labs’ penalties. The defense team emphasized that there were no direct fraud allegations against Ripple, unlike the charges faced by other entities.
Ripple’s attorney cited the SEC’s typical civil penalties as a basis for their defense, proposing that an “appropriate fine” should not exceed $10 million. The complex nature of the legal battle suggests that it could continue for years, although Ripple’s CEO remains optimistic about a potential resolution by late September.
In a positive turn of events, lawyer Jeremy Hogan predicts a potential settlement of $100 million, aligning with the optimism of the Ripple community. Previous victories have led to a surge in XRP’s price, indicating that a favorable outcome for Ripple could significantly impact the cryptocurrency’s performance.
Despite the legal turmoil, XRP was trading at $0.4902, marking a 1.26% increase in the last 24 hours. The outcome of the legal battle is crucial for both the cryptocurrency market and regulatory frameworks, as a favorable ruling for Ripple could boost XRP’s price and set a precedent for future regulatory actions.