The San Francisco-headquartered business Ripple has submitted its protest to the U.S. The remedy motion made by the Securities and Exchange Commission.
In the Ripple case, the SEC asked for disgorgement of earnings, civil fines, and injunctive relief last month. The troubled business, which gained notoriety for its connection to the cryptocurrency XRP, may have to pay out an astounding $2 billion. The SEC claimed in its motion that the company's persistent violations of the securities laws and its careless behavior made such a huge payment appropriate. The hefty fines and penalties are meant to discourage Ripple and other business participants from breaking the law in the future.
In contrast, Ripple contends in its most recent filing that it is the SEC's responsibility to provide concrete evidence of the company's impending legal violations. It further cites regulatory actions in other significant jurisdictions and its discussions with other US regulators to support its claim that its institutional sales did not demonstrate "reckless disregard" for the law.
Furthermore, according to Ripple, the SEC fails to demonstrate that any disgorgement is justified, claiming that its institutional sales caused no "pecuniary harm." As for the civil penalty, the company asserts that it should not exceed $10 million. The company further claims that any injunctive relief should be "narrow and tailored." The SEC's demands for an injunction, disgorgement, and other relief should be denied by the court. According to a recent report by Bloomberg, the SEC was sanctioned by a federal judge for abusing its power in the DEBT Box case, forcing two of its attorneys to quit. To secure a temporary restraining order against the cryptocurrency startup situated in Utah, the attorneys made false representations about certain important facts.
On the social media platform X, Ripple CEO Brad Garlinghouse stated, "Long after Gensler is gone, the US will be picking up the pieces of the agency's disastrous policies."
April 2024, Cryptoniteuae