Ripple Legal Battle: CLO Condemns SEC Intimidation Tactics Amidst Crypto Crackdown

In the unfolding legal drama between Ripple and the U.S. Securities and Exchange Commission (SEC), Ripple’s Chief Legal Officer, Stuart Alderoty, has publicly denounced the SEC’s tactics as intimidation. This accusation comes in the wake of Ripple’s formal objection to the SEC’s demand for a staggering $2 billion in penalties over past institutional sales of XRP.

Alderoty has been vocal about the SEC’s lack of substantial allegations or evidence of fraud or recklessness on Ripple’s part. He is firm that the SEC’s claims are unfounded, and he remains optimistic about the judge’s impartiality in the upcoming final phase of remedies.

On April 24, Ripple took a decisive step by filing a counter to the SEC’s motion for remedies, simultaneously requesting the court’s final judgment. This move follows the court’s decision that Ripple breached a section of the Securities Act, a ruling that Ripple has acknowledged.

Ripple has informed the court of significant changes in its XRP sales strategy and contract terms, aiming to rectify the initially identified issues. The company has taken measures to ensure that all counterparties are now accredited investors, showcasing its commitment to compliance.

Ripple Challenges SEC Demands

The fintech giant has also criticized the SEC’s remedial proposals, labeling them as further proof of the commission’s excessive administrative reach throughout the case. However, Ripple’s filing suggests that the SEC is behaving as if it had completely triumphed and established reckless behavior on Ripple’s part.

In a firm conclusion, Ripple has urged the court to reject the SEC’s requests for an injunction, disgorgement, and pre-judgment interest. Instead, Ripple proposes a civil penalty not exceeding $10 million for the cited offense, which starkly contrasts with the SEC’s hefty penalty demand.

The ongoing dispute between Ripple and the SEC has become a focal point in the broader conversation about cryptocurrency regulation in the United States. As the case progresses, the outcome will likely have significant implications for the crypto industry and its relationship with regulatory bodies. Also, Ripple’s proactive approach to compliance and its challenge to the SEC’s demands underscore the complexities of navigating the evolving landscape of digital assets.

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Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.

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