According to CryptoPotato, Ripple is currently contesting a $2 billion penalty imposed by the United States Securities and Exchange Commission (SEC) over alleged XRP sales violations. The company is advocating for a reduction of the fine to $10 million. Predictions suggest a possible settlement of $100 million. The lawsuit, which has been ongoing since December 2020, has seen Ripple gain partial court victories that strengthen its position.
Last month, the SEC sought a $2 billion penalty from Ripple, accusing the firm of XRP sales violations. Ripple's chief legal officer, Stuart Alderoty, announced earlier this week that the company had officially opposed the agency's request, citing several significant reasons why the fine should not exceed $10 million.
The future outcome of the battle remains uncertain, with many industry participants speculating about the next move. Lawyer Jeremy Hogan recently suggested that the legal dispute might be resolved with a $100 million settlement. He also expressed belief that the case might conclude in July or August this year, based on the developments he has observed so far.
Crypto X users seem to believe that Ripple has a better chance of emerging victorious due to three crucial, albeit partial, court victories secured last year. The first victory came in July when Federal Judge Torres ruled that the company's programmatic sales to secondary trading platforms did not constitute offers of investment contracts. Subsequently, the magistrates rejected the SEC's intentions to appeal the initial decision. A few months later, Ripple's CEO Brad Garlinghouse and Executive Chairman Chris Larsen were cleared of all charges brought by the Commission.
The outcome of the lawsuit could significantly impact the digital asset market. A decisive win for Ripple may trigger an XRP rally, while the opposite scenario could negatively affect the token and the entire digital asset market.
