Ripple Counters SEC’s $2 Billion Fine with $10 Million Settlement Proposal, Demonstrating Confidence and Resilience
In response to the SEC’s demand for a $2 billion fine, Ripple has taken a bold stance by rejecting the hefty penalty and offering a settlement of only $10 million. The San Francisco-based company justifies its proposal by pointing to its pre-complaint revenue from institutional sales and comparing its suggested penalty to those imposed in similar cases within the digital asset sector.
This development marks a significant moment in Ripple’s ongoing legal battle with the SEC, which started when the company was charged with selling XRP as an unregistered security. Ripple’s firm position showcases its determination to overcome regulatory obstacles while safeguarding its presence in the market.
Ripple’s Legal Arguments and Strategic Defense
As explained in a CNF YouTube video, the SEC initially demanded $876 million in disgorgement, along with civil penalties, and almost $200 million in prejudgment interest, totaling around $1.95 billion. However, Ripple argues that the appropriate civil penalty should not exceed $10 million, asserting that this amount is in line with its institutional sales revenues and resembles penalties imposed in similar cases involving digital assets without any significant misconduct.
The dispute stems from a 2020 SEC lawsuit against Ripple, claiming that the company offered XRP as an unregistered security. However, a subsequent court decision clarified that Ripple’s sales on the open market were not considered securities offerings, although direct sales to institutional investors were.
XRP Price Expected to Rally to $1?
Moreover, according to CNF, Ripple is gearing up to challenge the SEC’s potentially massive lawsuit. The optimism surrounding this legal battle has contributed to a surge in XRP’s price, surpassing important resistance levels. CoinShares reports that XRP has recently attracted $1.3 million in inflows, which is a noteworthy deviation from the broader crypto market trends that have seen more than $200 million in outflows for two consecutive weeks.
These legal and market developments highlight Ripple’s strategic navigation through regulatory challenges, potentially leading to a significant price rally for XRP. These dynamics indicate that XRP’s price could soon reach $0.7, paving the way for a further ascent to $1 in the near future. Currently, XRP is trading at $0.536, reflecting a 7.53% increase over the past week.
In conclusion, Ripple’s refusal of the SEC’s substantial fine and its proposed settlement demonstrate the company’s confidence and resilience. As it continues to confront legal challenges, XRP’s price may experience a rally, with a potential target of $1. The ongoing legal battle and market dynamics suggest that Ripple is strategically maneuvering through regulatory hurdles while aiming to secure its position in the crypto market.
