Ripple, attracted attention by announcing that it objected to the US Securities and Exchange Commission’s proposal. The San Francisco-based company sought injunctive relief, civil penalties and disgorgement of profits in the SEC lawsuit last month. As we reported as Koinfinans.com, the company known for the XRP cryptocurrency may face a payment of $ 2 billion.
In its motion, the SEC argued that the company’s reckless conduct and repeated violations of securities laws justified this high penalty. Large penalties and fines are expected to deter Ripple and other industry players from not taking the law seriously in the future. However, in its latest application, the company SECHe argues that the company has an obligation to provide concrete evidence that the company will violate the law again in the future.
They also continue to argue that their corporate sales are not complacent with the law, citing their interactions with other U.S. regulators and regulatory actions in other major jurisdictions. The company argues that any injunctive relief must be “narrow and specific.” Additionally, according to Ripple, the SEC cannot demonstrate the necessity of any compensation by proving that its corporate sales did not cause any “material harm.” As for the civil penalty, the firm argues that it should not exceed $10 million.
Ripple’s application stated, “The court should reject the SEC’s requests for injunctive relief, damages, and pre-trial interest and impose a fine not to exceed $10 million.” Ripple’s response to the SEC’s request was in line with the timing when two SEC lawyers were forced to resign after the regulator was punished by a federal judge for abusing its authority in the DEBT Box case, according to Bloomberg. Lawyers misrepresented some key facts to obtain a temporary restraining order against the Utah-based crypto company.
Ripple CEO Brad Garlinghouse commented in his statement on the social media network, “The United States will pick up the pieces of the agency’s disastrous policies long after Gensler is gone.”
