Ripple SEC Lawsuit Update: The Agency Seeks $2 Billion Fine From Ripple Labs

Key Points:

• The SEC seeks $2 billion in fines from Ripple over XRP sales, intensifying the legal battle.
• Ripple accuses the SEC of intimidation, and Brad Garlinghouse cites court wins against the regulator.
• The Ripple SEC lawsuit revolves around XRP’s security status amid broader crypto regulation scrutiny.

The U.S. Securities and Exchange Commission (SEC) is seeking fines and penalties totaling $2 billion in its ongoing case against Ripple Labs over sales of the cryptocurrency XRP, according to statements from the company’s chief legal officer, Stuart Alderoty.

SEC Seeks $2 Billion in Fines from Ripple in Ongoing Legal Clash

The SEC’s motion for judgment and remedies, filed on Friday, remains under seal, with redacted versions of the documents expected to be made public by Tuesday, March 26.

This development marks a significant escalation in the multi-year Ripple SEC lawsuit, which commenced in December 2020 when the SEC filed suit against the crypto firm and its executives. The SEC alleged that Ripple violated federal securities laws by selling XRP to both institutional and retail customers.

Alderoty criticized the SEC’s approach, accusing the regulator of seeking to punish and intimidate Ripple and the broader industry. Ripple’s CEO, Brad Garlinghouse, also voiced criticism, citing recent court decisions that ruled against the SEC in favor of the crypto companies it sued.

XRP’s Security Status Under Scrutiny as Ripple SEC Lawsuit Escalates

The legal dispute revolves around whether XRP constitutes an unregistered security. While Ripple scored a partial win last year when a judge ruled that programmatic sales of XRP to retail investors did not qualify as securities, the SEC’s pursuit of fines and penalties indicates the ongoing complexity of the case.

The Ripple SEC lawsuit is part of a broader trend of regulatory scrutiny within the cryptocurrency industry. The SEC has targeted numerous companies, including major American crypto exchanges like Binance and Coinbase, alleging the sale of unregistered securities.