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SEC VS Ripple: The strong offensive of the crypto regulator!

Mon 17 Jun 2024 ▪ 3 min of reading ▪ by Eddy S.
Getting informed Regulation Crypto

In the legal arena of the crypto world, the fierce conflict between Ripple Labs and the SEC has taken a dramatic new turn. Indeed, the American stock market regulator has retaliated forcefully by filing its scathing response to Ripple Labs. This counteroffensive follows the previous accusations that labeled the penalties demanded by the SEC as “unreasonable,” as evidenced by the Terraform Labs case.

Crypto SEC Ripple

The SEC strikes back and defends its sanctions

In a captivating twist, the SEC seizes this opportunity to vigorously defend the amount of sanctions it demands from Ripple Labs. According to the regulator, its charges are generally determined on a case-by-case basis in the crypto sector, taking into account the specifics of each case. Although the average settlement rate is 1.27% of sales revenue for crypto-related violations, the SEC asserts that the penalties imposed on Terraform Labs were more lenient due to mitigating factors.

Firstly, the regulator emphasizes having considered the insolvency of Terraform Labs and its lack of liquidity to pay a higher fine. However, in a striking contrast, the SEC highlights the fact that unlike Terraform Labs, which agreed to cease its actions that led to the crypto-related violations, Ripple Labs persists in the same contentious actions that triggered the initial lawsuit.

A crypto case likely to have major repercussions

Beyond the direct confrontation between the two parties in this crypto case, this new legal step is of crucial importance for the entire crypto sector. Indeed, the court’s decision regarding the appropriate “remedies,” that is, the sanctions or reparations to be applied in this crypto case, could have significant repercussions on other cases involving the SEC in the crypto world.

Although the additional authority notice filed by Ripple Labs aims to provide additional evidence in this crypto dispute, the final outcome remains uncertain and eagerly awaited by the community. 

In this epic battle between Ripple Labs and the SEC over a crypto case at the heart of the debates, each new twist fuels the tension and interest of the community. The reference to the Terraform Labs case by the regulator in this dispute adds a new dimension to this thrilling legal saga. Whatever the final outcome of this sensitive crypto case, there is no doubt that this decision will durably influence the regulatory landscape of crypto.

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Eddy S. avatar
Eddy S.

The world is evolving and adaptation is the best weapon to survive in this undulating universe. Originally a crypto community manager, I am interested in anything that is directly or indirectly related to blockchain and its derivatives. To share my experience and promote a field that I am passionate about, nothing is better than writing informative and relaxed articles.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.