Ripple Labs has formally opposed the US Securities and Exchange Commission’s (SEC) proposition to levy a substantial fine of nearly $2 billion against the company linked to the XRP Ledger blockchain. Filed yesterday (Monday), Ripple's opposition challenges the SEC's proposal, which seeks to persuade a New York judge to impose the hefty penalty.
Legal Battle between Ripple and SEC
The SEC's proposal outlines a fine totalling $1.95 billion, comprising $876 million for disgorgement, $198 million for prejudgment interest, and a civil penalty of $876 million. The basis for the SEC's case stems from allegations that Ripple Labs violated federal securities laws through its institutional sales of XRP. Notably, the court ruled in favour of Ripple on some fronts, dismissing parallel claims by the SEC regarding the legality of XRP sales on exchanges and algorithms.
Ripple's opposition document includes a redacted paragraph concerning its revenue from institutional sales, the income taxes it paid, and its incurred losses. Within this segment, Ripple asserts that it had no gains to disgorge, positioning it as a crucial argument in its defence against the SEC's proposed penalties.
“The Court should deny the SEC’s requests for an injunction, for disgorgement, and for pre-judgment interest, and should impose a civil penalty of no more than $10 million,” the filing said.
Anticipating Rise in Cryptocurrency Integration
Meanwhile, Ripple has upgraded its crypto-enabled cross-border payments solution, known as Ripple Payments, as reported by Finance Magnates. This enhancement aims to improve enterprise-grade blockchain infrastructure. In a statement released today, the cross-border remittance network highlights the ongoing shift in the global financial space, with increasing investment from companies and legacy payment institutions in blockchain integration.
It's anticipated that over 80% of global financial firms will incorporate cryptocurrencies into their operations within the next three years. Currently, Ripple offers expanded access to its extensive global network, spanning over 70 crypto and traditional payout markets, resulting in nearly 100% global payout coverage through a single onboarding process.
