In a startling turn of events, Ripple, a renowned cryptocurrency association, is caught in the crosshairs of the United States Securities and Exchange Commission (SEC), which has demanded a whopping $2 billion penalty. Caught off guard but resolved, Ripple’s determined CEO, Brad Garlinghouse, is standing ground in the face of this demand, geared to shine a light on the true colors of the SEC with unwavering commitment.
A few days ago, Stuart Alderoty, Ripple’s rigorous Chief Legal Officer, revealed the SEC’s recent petition to a Judge for $2 billion fines and penalties against Ripple. Alderoty portrays the SEC not as an unbiased regulator, but as an overwhelming force relentlessly seeking to intimidate and penalize Ripple, instead of truly applying the law.
Undeterred by the SEC’s staggering $2 billion penalty, CEO Garlinghouse countered that the SEC has been regularly operating on the outskirts of legal boundaries during numerous enforcement actions. This pattern of overstepping legal parameters has been duly noted by Judges, who have rebuked the SEC for its excessive misuse of power vested in it by Congress.
Garlinghouse derided the SEC’s penalty demand, pointing out that it lacks precedent and rationale, particularly in the absence of proven allegations, or findings of misconduct or recklessness. The CEO then pledged transparently to scrutinize the SEC’s conduct whilst robustly challenging its audacious demand.
Meanwhile, Ripple’s legal battle is set to continue in the coming month, as Alderoty indicated that the firm’s legal team will be addressing the SEC’s demands in a court filing. Alderoty portrayed the SEC as an organization trading in misleading and false statements, purposely intended to misguide and disorient.
In its lawsuit, the SEC reproached Ripple for allegedly breaching securities laws by selling its token- XRP as unregistered securities offerings to US investors. The agency alleged Ripple and its executives of failing to provide adequate disclosures for XRP, thus leaving investors unprotected.
However, Ripple supporters protest that SEC’s enforcement actions haven’t secured investors, but rather triggered complex financial losses for XRP holders. An ardent XRP aficionado, known as XRPCryptoWolf, emphasized that it should be the SEC, not Ripple, who should compensate billions of dollars to XRP holders.
According to XRPCryptoWolf, ever since the SEC embarked on its lawsuit against Ripple, XRP’s market capitalization has been stripped of approximately $15 billion, and the company has been delisted from prominent exchanges, causing numerous XRP holders to bear extensive financial losses.
Whether it is an audacious misuse of power by the SEC or a fault on Ripple’s part remains to be seen. As Ripple’s legal team gears up to defend the company’s interests against an entity like the SEC, this clash between industry and regulatory power promises to chart a significant course in the world of cryptocurrency.
