Ripple challenges the $2 billion SEC penalties, and the public’s reaction turns the tables on the SEC
Is the public’s sentiment shifting against the regulator as Ripple contests the SEC’s $2 billion demand, driven by resentment within the cryptocurrency community?
The stakes are quite high in the continuing legal battle between the U.S. SEC and Ripple (XRP), as the SEC is pursuing a whopping $2 billion fine against the blockchain business.
$876 million in compensatory damages, $198 million in interest on the stated sum, and an additional $876 million in civil penalties are all included in the list of claims.
The company’s response, which is detailed in a court document dated April 22, takes a different tack and calls for a civil penalty that doesn’t go over $10 million.
Stuart Alderoty, Ripple’s Chief Legal Officer, suggested the company’s position in a statement on X, highlighting that the case lacks allegations or findings of recklessness or fraud.
He suggested the SEC’s demand as part of a broader pattern of intimidating actions against the crypto industry in the U.S.
Ripple CEO Brad Garlinghouse echoed these sentiments, warning of the long-term repercussions of the SEC’s actions and policies.
In the midst of these legal disputes, Ripple claims in its filing that it has modified its procedures, bringing its XRP token sales strategy into conformity with court orders and guaranteeing that it is in compliance with national and international regulatory requirements.
In addition, Ripple insists that it has demonstrated its desire to work with law enforcement agencies by making a concerted effort to fix issues brought up by the court and regulatory bodies.
How did the public react?
In response to the ongoing legal dispute, social media users have expressed a range of opinions, reflecting concerns and frustrations against the SEC.
An X user evoked the image of a lawyer facing criticism from a judge, drawing parallels to the SEC’s handling of the situation.
He raises the seeming irony of a body charged with enforcing the law being accused of deviating from its original intent.
Another user questioned who was holding the investigators themselves accountable and made a connection between the SEC’s conduct and extortion.
