US Securities and Exchange Commission (SEC), Ripple and that various measures should be taken to deter similar companies from similar violations in the future. argues. These measures include injunctions, deprivation of profits and civil penalties. The SEC believes that such actions will offset the harm caused to investors and markets.
In order to deter Ripple and other companies from violating securities laws and compensate for the damage caused to the markets, the SEC is asking the court to provide the necessary relief. The Commission outlined several factors supporting the application of interim measures and penalties. These include Ripple’s history of violations, the reckless nature of its behavior, and the fact that its violations are not isolated incidents.
From a regulatory perspective, these factors collectively support the need for regulatory action.
The SEC is of the opinion that Ripple’s profits from illegal sales of XRP should not be forgiven. It is considered unacceptable for Ripple to profit from these wrong actions. The SEC stated that Ripple violated Section 5. Additionally, he states that he received almost a billion dollars from illegal XRP sales through identified contracts. He also states that a significant civil penalty against Ripple would have a deterrent effect both for the company and against others in the industry.
Ripple’s Response
Ripple’s lead attorney, Stuart Alderoty, said the SEC’s review of Ripple and the cryptocurrency He criticized the SEC for allegedly aiming to punish and suppress the industry. Additionally, Ripple CEO Brad Garlinghouse condemned what he saw as regulatory overreach. He pointed to alleged abuses by the SEC under Gary Gensler. It is stated that Ripple plans to submit its response to these allegations in April.
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