According to documents recently submitted to the court, the U.S. Securities and Exchange Commission (SEC) is opposing Ripple’s claim that it should pay less fines.
SEC says Ripple Must pay approximately $2 billion in fines for sales XRP
-1.77%
To institutional investors. In a counter-motion filed last month, Ripple argued that the figure should be: 10 million dollars. The SEC noted that the proposed fine was large, but said that Ripple’s proposed fine would be a “slap on the wrist.” filing Posted on Tuesday.
“Rather, it would encourage other cryptocurrency issuers to violate Section 5 by engaging in eminently lucrative endeavors, thereby depriving investors of the disclosures required by Congress as mere ‘costs of doing business,’” SEC lawyers wrote. He said.
The SEC and Ripple have been fighting in court for years after the SEC accused Ripple of raising $1.3 billion through the sale of XRP, an unregistered security. Last year, New York Judge Analisa Torres rule Some of Ripple’s XRP sales, called programmatic, did not violate securities laws due to a blind bidding process. However, she determined that selling tokens directly to institutional investors is a security.
The SEC said Ripple said: Institutional sales of XRP have made billions of dollars. Ripple said it changed the way it sells XRP after the New York ruling.
fishing license
The SEC also criticized Ripple’s court assurances that it would never violate the law again in the future.
“Ripple also points to other licenses Ripple has obtained in other jurisdictions, including one explaining that it ‘does not treat XRP sales as securities sales,’” the court said, indicating that Ripple need not worry about whether it could again violate U.S. securities laws. Guaranteed.” The SEC’s lawyers wrote Tuesday: “This claim, similar to the claim that a New York restaurant does not need to obtain a liquor license because it has a fishing license in California, is absurd.”
Stuart Alderoty, Ripple’s chief legal officer, refuted the SEC’s statement. post X Tuesday evening.
“And just when you think the SEC couldn’t fall any further, if you’re a non-US financial regulator and have worked hard to build a comprehensive cryptocurrency licensing framework, you should know that the SEC doesn’t respect you and thinks you do. They give out the equivalent of a fishing license,” Alderoty said.
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