SEC rejects Ripple’s effort to use the settlement of another crypto case

The American securities regulator stated that Ripple & TerraForm cases are different from each other, so no reference from the TerraForm case can be used in the Ripple case. 

Ripple is a San Francisco headquartered fintech firm that is known for its XRPL (XRP) Cryptocurrency-powered cross-border payment services. Since Dec 2020, Ripple has been under huge legal hurdles because of a suit filed by the United States Securities and Exchange Commission (SEC) against Ripple’s business operations in link with XRP Cryptocurrency

On 15 June 2024, The US SEC stated that Ripple’s attempt to use reference from the TerraForm labs lawsuit was pointless because the case with TerraForm labs was a different thing.

Ripple argued that the SEC’s $2 billion penalty demand was excessive, pointing out that the SEC only sought a 1.27% penalty from Terraform Labs, despite its $33 billion in sales and causing over $40 billion in losses through fraud. The SEC criticised Ripple for making inappropriate comparisons and using flawed calculations, stating that the comparison was invalid because Terraform Labs is bankrupt and agreed to severe penalties, unlike Ripple.

In response to the SEC’s response in this matter, Ripple chief legal officer Stuart Aldetory defended Ripple and XRP against the SEC by pointing out that Ripple has not conceded to any SEC demands, the court has ruled that XRP is not a security, there are no victims to compensate, and Ripple is thriving as a company. Additionally, the SEC seems to have abandoned its excessive $2 billion penalty demand.

XRP price action 

The current trade price of the XRP coin is $0.488 & this trade price is 3% higher over the last 24 hours.

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