The Securities and Exchange Commission (SEC) is ramping up its efforts against Ripple Labs Inc., with a bold aim to extract a staggering $2 billion in fines and penalties from the cryptocurrency giant. This aggressive stance marks the latest twist in the enduring legal showdown between the regulatory authority and Ripple.
Stuart Alderoty, Ripple’s Chief Legal Officer, has disclosed that the SEC is preparing to formally lodge documents seeking this substantial sum from Ripple Labs. The imminent filing, anticipated to be unveiled to the public shortly, signifies yet another pivotal moment in the ongoing confrontation between these two influential entities.
SEC’s Allegations Against Ripple
The crux of the SEC’s lawsuit lies in the allegation that Ripple conducted an unregistered securities offering by selling XRP tokens to investors. According to the SEC, XRP should have been registered as a security before being offered to the public. The lawsuit also names Ripple’s key figures, CEO Brad Garlinghouse and co-founder Chris Larsen, accusing them of profiting from the sale of XRP.
Ripple’s Defense
Ripple vehemently refutes the SEC’s allegations, asserting that XRP is not a security but a digital asset with genuine utility. Ripple argues that XRP serves as a medium of exchange and a bridge currency within its payment network, akin to Bitcoin and Ethereum, which the SEC classifies as commodities.
