Ripple Challenges SEC’s $2B Fine, Argues for Lower Penalty

Ripple has taken a firm stance against the United States Securities and Exchange Commission (SEC), contesting the regulator’s proposed $2 billion fine and advocating for a penalty not exceeding $10 million.

In a recent filing, Ripple Labs pushed back against the SEC’s punitive measures, including injunctions, disgorgement, and pre-judgment interest, asserting that such severe penalties lack legal or principled justification.

The filing emphasized Ripple’s commitment to compliance moving forward and its willingness to abide by regulatory guidance. Ripple deems the SEC’s proposed penalties excessive, with the requested $2 billion fine comprising $876 million in disgorgement, $198 million in pre-judgment interest, and another $876 million in civil penalties.

Ripple argues that a $10 million penalty is more proportionate to its actual revenues and aligns with comparable cases in the digital asset space where no reckless behavior or substantial harm occurred.

Stuart Alderoty, Ripple Labs’ chief legal officer, condemned the SEC’s relentless pursuit of punitive measures, characterizing it as intimidation against the entire crypto industry. Despite Ripple’s victories on key legal points, Alderoty expressed hope for a fair resolution in the final stages of the case.