Crypto company Ripple has responded to the SEC’s nearly $2 billion fine by proposing a civil penalty of no more than $10 million. In an April 22 court filing, Ripple urged the Court to reject the SEC’s demands, arguing the case lacked allegations of recklessness or fraud.
Ripple’s Chief Legal Officer, Stuart Alderoty, criticized the SEC’s actions as part of a broader pattern of intimidation against the crypto industry. CEO Brad Garlinghouse added that the US would deal with the aftermath of the SEC’s policies long after Gary Gensler’s tenure.
Ripple highlighted that it has adjusted its XRP token sales to comply with court mandates and ensure counterparties are accredited investors. The company noted the SEC’s $2 billion fine request is twenty times higher than any previous digital-asset case penalty.
Ripple argued that the SEC failed to justify disgorgement and prejudgment interest. This case emphasizes the ongoing regulatory tensions in the crypto industry and Ripple’s efforts to align with legal standards while challenging perceived regulatory overreach.
