This request made public in a Tuesday court document, highlights the rising tensions in this high-profile case.
The heart of the dispute lies in the SEC’s allegations against Ripple Labs, regarding its digital currency, XRP.
Rising Stakes in Ripple Case
The SEC has accused Ripple of conducting a securities offering without proper registration, a claim that Ripple has vehemently denied. This case, closely monitored by the crypto industry and regulators, may set a crucial precedent for U.S. digital currency law.
The SEC’s sealed motion last Friday triggered strong reactions from Ripple’s leadership. Stuart Alderoty, Ripple’s Chief Legal Officer, took to the social media platform X to express his disdain for the SEC’s actions. He accused the SEC of misleading tactics, promising Ripple’s response next month.
The U.S. Securities and Exchange Commission (#SEC) is seeking nearly $2 billion in fines from #Ripple Labs in the $XRP lawsuit. https://t.co/WMIjUoQfRL
— Bitcoin.com News (@BTCTN) March 27, 2024
Ripple CEO Brad Garlinghouse also did not hold back in his criticism of the SEC, particularly targeting SEC Chair Gary Gensler. Garlinghouse charged Gensler’s SEC with legal overreach, citing judicial reprimands. He highlighted the “gross abuse of the power entrusted to it by Congress” in the Debt Box case and the lack of “faithful allegiance to the law” in the Ripple case as examples of the SEC’s alleged overreach. Here is the official document for more info.
More About The SEC % Ripple
Furthermore, Garlinghouse highlighted the SEC’s oversight of the FTX fraud by Sam Bankman-Fried. This critique reflects the crypto community’s call for clear and fair digital currency regulation.
That Gary is planning to go after ETH and declare it a security should come at no surprise.
He publicly stated that both XRP and ETH are likely "noncompliant securities" all the way back in April 2018.
Then he met with Clayton a day before the SEC lawsuit against Ripple was… pic.twitter.com/9Y0THw8i3Z
— Anders 🏁🌏 (@X__Anderson) March 21, 2024
The request for nearly $2 billion in fines against Ripple marks a pivotal moment in the legal battle between Ripple and the SEC. It underscores the ongoing debate over the classification of digital currencies and the extent of regulatory oversight.
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