In response to the SEC’s motion for remedies and final judgment regarding the XRP lawsuit, Ripple has submitted its opposition. The fintech company challenges the SEC’s request for nearly $2 billion in penalties by proposing a maximum fine of $10 million. Ripple’s 186-page opposition document, filed on Monday, outlines its arguments against the SEC’s harsh demands following a court ruling that found Ripple guilty of violating securities laws through the unregistered sale of XRP to institutional investors.
Ripple Vs. SEC: $10 Million Or $2 Billion?
Ripple admits the violation, acknowledges the court’s decision, and highlights the compliance changes it has made. The document emphasizes Ripple’s altered approach to selling XRP and revised contracts to address previous issues. This admission sets the stage for Ripple’s argument that further punitive actions, such as an injunction, are unnecessary.
Ripple strongly opposes the SEC’s proposed injunction, pointing out the substantial changes it has implemented to prevent future violations. The document asserts that there is no reasonable likelihood of future violations based on Ripple’s proactive remedial measures.
Regarding the SEC’s request for disgorgement, Ripple argues against it, stating that the SEC has not proven any financial harm to investors caused by Ripple’s actions. The opposition document highlights the lack of demonstrated pecuniary harm as a reason why disgorgement is unwarranted.
When it comes to civil penalties, Ripple advocates for a significantly reduced amount, suggesting that a penalty not exceeding $10 million aligns better with similar cases and the nature of the violations.
Legal precedents, including the Arthur Lipper Corp. v. SEC case, are central to Ripple’s defense strategy. These references are used to support Ripple’s position against severe penalties like an injunction, contending that such measures are not necessary given the company’s corrective actions.
Reactions From The XRP Lawyer Community
Pro-XRP legal experts have expressed confidence in Ripple’s arguments. Bill Morgan, a prominent pro-XRP lawyer, believes that Ripple’s stance against disgorgement is strong and should not result in investor windfalls. Other legal experts, like Jeremy Hogan, indicate that the SEC may face challenges in securing a win against Ripple due to legal concerns.
James “MetaLawMan” Murphy outlines the likely timeline for Judge Torres’ decision, suggesting a timeframe of 60 to 90 days after the last brief was submitted.
At present, XRP is trading at $0.54921, reflecting a 2.5% increase in the last 24 hours.
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