According to CryptoPotato, Ripple has challenged the United States Securities and Exchange Commission's (SEC) proposed $2 billion fine related to XRP sales. The company argues that the majority of transactions were legal and informed, suggesting a maximum penalty of $10 million. This case is moving towards a crucial trial that could significantly affect XRP's price and the broader cryptocurrency market.
The legal dispute between Ripple and the SEC is intensifying, with both parties taking numerous actions. The regulator proposed a $2 billion fine on Ripple about a month ago, accusing the company of XRP sales violations. Ripple's management team, including CEO Brad Garlinghouse and CLO Stuart Alderoty, strongly disagreed with the proposal, accusing the SEC of making false and misleading statements.
Alderoty recently disclosed that Ripple has filed its opposition to the SEC's proposal, expressing confidence that the magistrates will handle the final remedies phase fairly. The company provided several key reasons why the penalty should not exceed $10 million. Firstly, Ripple argued that there are no allegations of deceiving or misleading individuals and entities who purchased XRP years ago. The company stated that these entities were fully informed about the transactions they were entering and did so in their own financial interests.
Secondly, Ripple maintained that most of its XRP transactions were legal and did not act with scienter. The company also argued that it did not cause significant financial losses and that the SEC cannot prove otherwise. Ripple concluded its opposition by stating that the SEC's suggestion that Ripple's total assets warrant a massive fine is erroneous, as the SEC regularly imposes far smaller fines to deter misconduct by the world's largest corporations.
Ripple's response came just before the start of the final phase of the lawsuit between the company and the US SEC, which will determine the outcome of the lengthy legal battle. The trial is scheduled to begin today (April 23), and some believe Ripple enters with an advantage, having secured three partial court victories last year. The case's resolution could significantly impact XRP's price, potentially triggering a bull run if Ripple decisively wins. Conversely, a loss for Ripple could have negative implications for the entire cryptocurrency industry and lead to the implementation of stricter regulations.