Million

Summer

James

In a significant update from the financial regulatory landscape, the U.S. Securities and Exchange Commission (SEC) has agreed to drastically reduce its settlement claim against Ripple, marking a pivotal moment in the company’s ongoing legal challenges.&nbsp; 
Originally facing a daunting $2 billion penalty, Ripple labs now has to pay only $102.6 million. 
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 <a href="https://twitter.com/hashtag/XRPCommunity?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">#XRPCommunity</a> <a href="https://twitter.com/hashtag/SECGov?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">#SECGov</a> v. <a href="https://twitter.com/hashtag/Ripple?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">#Ripple</a> <a href="https://twitter.com/hashtag/XRP?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">#XRP</a> <a href="https://twitter.com/SECGov?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@SECGov</a> has responded to <a href="https://twitter.com/Ripple?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@Ripple</a>’s letter regarding the TerraForm Labs Consent Judgment. <a href="https://t.co/VvGSJffwa8" target="_blank">pic.twitter.com/VvGSJffwa8</a>— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) <a href="https://twitter.com/FilanLaw/status/1801755432102383850?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 14, 2024</a>
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Legal Dynamics and Comparisons 
This decision follows Ripple’s strategic legal push, where the company referenced the Terraform Labs settlement as a comparative benchmark to argue for a more reasonable penalty. Despite Ripple’s efforts to align its case with precedents where penalties ranged from 0.6% to 1.8% of the defendants’ revenue, the SEC highlighted several discrepancies.&nbsp; 
Ripple’s proposal of a $10 million settlement notably contrasted with Terraform’s situation, where the latter’s bankruptcy and agreement to comprehensive relief measures, including the dissolution of remaining tokens, played a key role in their reduced fine. 
SEC’s Stance and Ripple’s Response 
Moreover, the SEC criticized Ripple’s comparison as flawed, emphasizing the unique conditions of the Terraform settlement, which involved the company ceasing operations and undertaking significant remedial actions. 
Unlike Terraform, Ripple has not consented to any similar relief measures, a stance that has evidently influenced the SEC’s settlement approach. The revised penalty of $102.6 million, while substantially lower than initially proposed, remains a firm stance by the SEC to deter future violations. 
The legal battle has been a central narrative since December 2020, when the SEC first alleged that Ripple’s XRP token constituted an unregistered security. Despite a 2023 court decision favoring Ripple by declaring XRP not a security in programmatic sales, the broader lawsuit persists with a trial date still on the horizon. 
The resolution of this case could set a significant precedent for the treatment of digital assets under U.S. securities law. 
Also Read: <a href="https://www.cryptotimes.io/2024/06/14/sec-chair-gensler-signals-potential-ether-etf-approval-by-summer-end/" target="_blank" rel="noreferrer noopener">SEC Chair Gensler Signals Potential Ether ETF Approval by Summer End</a>

Ripple’s SEC Settlement Cut from $2B to $102 Million

The Crypto Times

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