The United States Securities and Exchange Commission (SEC) has rejected Ripple Labs’ plea for a reduced penalty, arguing that the proposed reduction would be inadequate. Ripple had requested a penalty not exceeding $10 million, citing a recent settlement by Terraform Labs as a precedent. However, the SEC countered, stating that the proposed penalties for Ripple, totaling nearly $2 billion, are justified.
The legal conflict between Ripple and the SEC dates back to 2020 when the SEC accused Ripple of selling unregistered securities. Despite a ruling confirming this accusation, the SEC maintains that a significant penalty is necessary to meet legal standards and objectives.
The SEC’s decision highlights the ongoing battle between regulators and cryptocurrency companies, emphasizing the importance of compliance in the rapidly evolving digital asset space. Stay tuned for further developments in this high-stakes legal showdown.
