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Qadir AK
Qadir AK
Author
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Apr 06, 2024 08:14 UTC
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Excessive Fine? Crypto Community Erupts Over SEC’s Ripple Penalty Demand
The SEC is demanding $1.95 billion from Ripple for allegedly selling XRP as an unregistered security.
Many people who support XRP believe the SEC's fine is unfair and is meant to hurt Ripple.
Ripple is arguing against the fine and the legal battle is ongoing. The outcome could affect the entire crypto industry.
When it comes to legal disputes, few battles have stirred the crypto community as much as the ongoing feud between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). The latest twist in this saga—the SEC’s demand for a massive $1.95 billion in fines and penalties—has sparked intense reactions, drawing criticism from XRP supporters who see it as an overreach of regulatory power.
SEC’s Remedies Request
On March 22, the SEC made a bold move in court, revealing its demand for Ripple Inc. to pay a staggering $1.95 billion in fines and penalties. This amount far surpasses the alleged gains Ripple made from its supposed unregistered securities offering through XRP institutional sales, totaling $728.9 million between 2013 and 2020.
The SEC’s aggressive stance hasn’t gone unnoticed by the XRP community, which has raised concerns about what they perceive as a targeted attack on Ripple. Critics argue that the SEC’s demand shows bias, especially when compared to how it handles similar cases involving other companies.
Also Read: Here’s How XRP Price will be Impacted from Ripple’s Stablecoin Launch
Experts Weigh In
Legal experts like Professor J. W. Verret have pointed out the stark difference between the SEC’s demand and its usual recovery targets. While the SEC typically aims for an 11% recovery, its demand for a whopping 300% from Ripple has raised suspicions of ulterior motives.
Joining the chorus of dissent, Australian-based lawyer Bill Morgan has condemned the SEC’s actions as a clear abuse of regulatory power.
Despite Ripple scoring some wins in court—including a ruling that XRP isn’t a security and the dropping of charges against its executives—the fight is far from over. With Ripple preparing to file its opposition later this month, the fate of the SEC’s demand hangs in the balance.
The court’s upcoming decision on the SEC’s demand holds significant implications not just for Ripple but also for the wider crypto world.
Also Read: Is This the End of XRP? Decoding the Impact of Ripple’s Stablecoin Launch
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