In a pivotal development for the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) has made a groundbreaking proposal: a whopping $2 billion fine against Ripple Labs.
This proposal, which includes $876 million in disgorgement, $198 million in prejudgment interest, and an equal amount as a civil penalty, marks a significant escalation in Ripple’s legal battle with the SEC.
For years, Ripple has been locked in a legal tussle with the SEC, which accuses the firm of illicitly raising $1.3 billion through XRP sales, deemed unregistered securities by the agency. The focus of the SEC’s scrutiny lies on Ripple’s direct sales to institutional investors, which the agency claims amounted to nearly $1 billion.
In a nuanced ruling, Judge Analisa Torres differentiated between Ripple’s programmatic sales of XRP, which she deemed lawful, and its direct sales, which she did not.
Ripple’s executive team has vehemently criticized the SEC’s actions, with Stuart Alderoty, Ripple’s counsel, accusing the regulator of disseminating misleading statements.
Ripple CTO Reiterates XRP Autonomy
In related news, Ripple’s Chief Technology Officer (CTO), David Schwartz, has taken to social media to address concerns regarding the distribution of XRP.
Schwartz emphasized the autonomy of digital asset holders to sell without permission, challenging the notion that purchasing digital assets is inherently more ethical than selling them. He also candidly discussed his personal stance on selling XRP bonuses due to the high tax rates on earned income.
Furthermore, Schwartz responded to community suggestions for alternative XRP distribution methods, such as automated market maker (AMM) pools or reward systems. He highlighted the complexities and potential for fraud in these strategies, underscoring the challenges Ripple faces in ensuring equitable distribution of XRP.
The outcome of this legal battle could have profound implications for Ripple and the broader crypto market, potentially shaping how digital assets are regulated and sold in the future.
As Ripple prepares its defense against one of the most significant enforcement actions in the SEC’s history, the industry remains on edge, closely monitoring the proceedings and anticipating their impact on the crypto landscape.
XRP Price Remains Downtrodden
Despite a strong recovery across the crypto market, with Bitcoin gaining over 13% in the past week and the broader crypto market recovering by an even more impressive 14.5% from its low on March 20, XRP continues to drag. At the time of this writing, the cryptocurrency was trading at $0.6134, down over 17% from its March 11 high of $0.7242.
Regardless, XRP is currently unlikely to drop below the $0.6000–$0.5865 axis. With that solid floor supporting it, the cryptocurrency stands a fighting chance to return to the $0.6800 area and higher. However, the hope in the market is for XRP to regain a stronger correlation with the broader market and break out of the range-bound trend on the larger time charts.
XRP Statistics Data
XRP Current Price: $0.6134
Market Cap: $33.5B
XRP Circulating Supply: 54.8B
XRP Total Supply: 99.9B
Market Ranking: #6
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