SEC strongly condemns Ripple’s (XRP) request for a lower settlement after experiencing problems with Terraform. The recent reply by the SEC to Ripple claims is a significant new development in the ongoing litigation, especially when the agency stated the settlement charges issue in the Terraform Labs case. This highlights the implications and challenges of regulatory oversight in the blockchain sector.
SEC’s Firm Rebuttal to Ripple’s Allegations Sets Stage for Intensified Legal Showdown
In its defense, Ripple claimed that its fine was smaller than in instances that involved no user losses at Terraform.
The SEC is asking the court to approve the $2 billion settlement over Ripple’s securities law violations in relation to the sales of XRP to institutional investors, but Ripple claims that the fine should not cost more than $10 million, igniting a contentious legal battle over monetary sanctions.
In its response to Ripple Labs, the SEC claimed that its charges were individually calculated based on the context, with Terraform Labs being charged a lower rate.
It highlighted Terraform Lab’s bankruptcy and loss of funds while denying Ripple Labs continued to engage in alleged violations even amid litigation.
Lack of Clarity on the SEC Remedial Approach with Ripple and Terraform Labs Cases
Ripple Labs’ filing of supplemental authority brings more evidence to the table; however, the court is still waiting for a decision regarding the proper relief.
During the wait, XRP Labs’ business growth, such as stablecoin and Archax, may shape future settlements with the SEC.