In a rather shocking development, the United States Securities and Exchange Commission (SEC) demanded a $2 billion sanction against Ripple. Responding to the surprising demands, Ripple’s CEO, Brad Garlinghouse took a firm stance against the agency’s demands, determined to expose the true nature of the SEC.
Ripple CEO criticizes SEC demands
Stuart AlderotyRipple’s Chief Legal Officer (CLO) recently released in a post on X (formerly Twitter) that the US SEC asked a judge $2 billion in fines and penalties against Ripple. According to the Ripple CLO, the SEC is on a relentless quest to “punish and intimidate Ripple” rather than faithfully enforcing the law.
Defying SEC’s $2 Billion Fine, Garlinghouse emphasized that the agency has consistently operated beyond the bounds of the law in numerous enforcement actions. He revealed that The justices also took note of the SEC’s actionspreviously admonishing the agency for extensive abuse of power entrusted to it by Congress.
Ripple’s CEO also criticized the SEC’s penalty demand, arguing that it lacks precedent and justification, particularly given the absence of any allegations, findings of fraud or recklessness in the case. As a result, Garlinghouse promised to expose the SEC for its conduct, emphasizing that Ripple will respond vigorously to the SEC’s action.
Notably, Alderoty has released that the company’s legal team will respond to the SEC’s demands in a process scheduled for next month. Offering its perspective on the SEC, the Ripple CLO characterized the agency as “one that trades false, mischaracterized statements designed to deceive.”
SEC actions hurt XRP holders the most
In your lawsuit against Ripple, the US SEC accused the payment company of violating securities laws by selling XRP in unregistered securities offered to US investors. According to the agency, the company and its executives had failed to protect your investorsdepriving them of proper disclosures of XRP.
However, members of the Ripple community to discuss that the SEC’s enforcement actions against Ripple did not protect investors, but caused even deeper challenges and financial losses for XRP holders.
A popular XRP enthusiast, identified as XRPCryptoWolf, claimed that it should be the SECnot Ripple, paying billions to XRP holders.
“The SEC asking for $2 billion in fines and penalties is ridiculous when they are the ones hurting XRP holders the most financially. The SEC owes tens of billions of dollars to XRP holders,” he stated.
The XRP community member released that after the SEC announced its lawsuit against Ripple, approximately $15 billion was wiped from XRP’s market capitalization, and the token was also delisted from major exchanges. As a result of the lawsuit’s significant impact on the value of XRP, millions of XRP holders suffered financial losses.
XRP price at $0.644 | Source: XRPUSDT on Tradingview.com
Featured image from Inside Bitcoins, chart from Tradingview.com
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