Key Takeaways:
- The SEC seeks a $2 billion judgment against Ripple Labs, intensifying the legal battle that started in December 2020 over alleged securities law violations concerning XRP.
- Ripple’s executives, CEO Brad Garlinghouse and CLO Stuart Alderoty, criticize the SEC’s demand as excessive and punitive, committing to a robust defense against the claims.
- The outcome of Ripple’s legal confrontation with the SEC is highly anticipated within the crypto industry, as it may establish a precedent for future regulatory actions against other crypto entities.
The recent court filings in New York reveal the SEC’s push for a $2 billion judgment against Ripple Labs, stirring the crypto community.
According to Ripple’s CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty, this move marks a significant escalation in the ongoing legal confrontation between the SEC and Ripple, which initiated in December 2020 over alleged federal securities law violations related to XRP sales.
Ripple Labs CEO Brad Garlinghouse said on X that the SEC will seek $2 billion in fines and penalties in its legal fight over the XRP crypto token. https://t.co/0YgvNcyxWn
— Bloomberg Crypto (@crypto) March 25, 2024
This lawsuit had previously led to the suspension of XRP trading on several U.S. platforms.
Despite no allegations of fraud, Ripple’s leadership vows to contest the SEC’s unprecedented demand vigorously, highlighting the regulator’s approach as misleading and punitive.
Gensler’s SEC has repeatedly acted outside the law – not going unnoticed by Judges admonishing the agency for a "gross abuse of the power entrusted to it by Congress" (DEBT Box case) and for acting without "faithful allegiance to the law" (Ripple case). Let’s not also forget… https://t.co/vay6WDBfJc
— Brad Garlinghouse (@bgarlinghouse) March 25, 2024
With Ripple preparing its counterarguments, the crypto industry watches closely as this legal battle unfolds, potentially setting a precedent for future regulatory actions.
About The Author
Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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