The Ripple FinTech company is making a bold move in the market. While fighting the U.S. Securities and Exchange Commission (SEC) in court, they proposed a $10 million cover for the legal charges. However, the SEC’s demand is considerably higher than the punishment of $1.8 billion.
Ripple is the latest to join this ongoing legal battle. Its detailed 187-page filing, submitted on Monday in a broad sweep, indicates its defense strategy. The correspondence appears following the court judgment on Ripple’s violation of securities law by selling XRP tokens to institutional investors without registration in advance.
Ripple counters SEC with proactive compliance measures
Ripple has recognized the judgment and executed a new sales strategy and customer contract agreement based on its responses to the accusation. The company, both in the past and presently, admitted to having incorporated the previously mentioned ruling into its doctrines and business practices of XRP selling, and the materials showed how the contracts were additionally altered to avoid the indicated issues with Ripple,” the opposition document concluded.
By recognizing its past errors and amendments to its behavior patterns, Ripple maintains that there is almost no reasonable likelihood of it returning to at least this shade of violation in the future. This is one of its arguments against the SEC’s call for an order that seriously restrains Ripple from this very shade of violation.
According to the solution offered by the given fintech firm, it has done so to a rare extent ahead of time, eliminating the necessity of any subsequent wrongdoing. The case of Ripple… is backed up by several precedents that they call upon to counteract the application of punitive measures.
A prominent instance, Arthur Lipper Corp. v. SEC, which backs the injunction requirement, is used to deliver an opinion that an injunction comes only if concrete evidence provides for a probable recurrence of the practice. The company rectification and precautions are not likely to do so; hence, no injunction is required.
Ripple advocates for measured penalties amid legal debate
Ripple’s submission talks back to the SEC’s claim about the damage incurred by Ripple that may have hurt investors, including financial ones. This is the key thing in their reasoning, which means that the devastation of the investors is possible without financial loss only if their net liquidities are not affected. Ripple encourages the reduction of penalties, which should not exceed $10 million.
In addition, they suggest creating a separate classification for financial crimes. This number (of equivalents), Ripple believes, is in line with the penalties for actions of the same kind and also expresses the nature of violations.
The document concerns the rationale behind the claim that any tougher punishments would be unnecessary and disagree with the established legal norms and criteria. Ripple’s defense attorneys accuse the court of a strict approach, which, backed by legal precedent, is loosened by the large compliance measures already applied by the company.
Ripple’s legal battle spurs market and community support
The response to the legal community is no different, especially from Ripple and XRP, which have praised the company’s efforts. Senior attorney Bill Morgan has expressed his support for the company, saying, “They are taking a strong position on disgorgement.”
Yesterday, the judicial procedures increased the market’s reaction, and XRP’s price rose by 2.5%, closing at $0.54921. This spiral speaks volumes of Ripple’s investors, who wish for the smooth legal resolution of its current hurdles.
Source:coinmarket map
As the case goes along, the market community and crypto fans carefully track the progress in the hope that these developments will lead to breakthroughs in understanding how the US Securities laws should regulate cryptocurrencies.
The outcome of this judicial struggle could prove more important than anticipated. It might result in greater promotion of fintech companies and renewed approaches in the regulatory sector to blockchain digital assets.