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SEC Seeks to Collect 300% of Unregistered Sales from Ripple

Apr 4, 2024

An ongoing courtroom standoff between the United States Securities and Exchange Commission (SEC) and blockchain company Ripple has grabbed the attention of the cryptocurrency community. Legal experts have noted an apparent disparity in the approach taken by the regulatory watchdog in this case compared to others.

J. W. Verret, a law professor, highlighted that while the SEC usually recovers 11% of unregistered sales claims, they are requesting 300% from Ripple. This led Verret to criticize this move as an abuse of power. Additionally, a visual representation shared by Verret showed the discrepancies in the SEC's proposed remedies for Ripple compared to other cases like Telegram, Kik Interactive, LBRY, and Kraken.

The SEC's demand for $2 billion in fines and penalties from Ripple far exceeds the amounts collected in similar cases. Verret and another legal expert, Bill Morgan, have both criticized the SEC for its aggressive actions against Ripple, suggesting that the regulatory body has ulterior motives in the cryptocurrency space.

The XRP token, central to the legal battle, has experienced a decline in value, potentially due to the negative news surrounding Ripple. This decline has been reflected in its price performance over the previous week and month as of April 4.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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