As stated by Ripple in the court filing, "The SEC’s remedial requests are more evidence of the administrative overreach that has beset this case. The agency acts as though it had prevailed entirely and had proved reckless conduct. It has done neither."
Ripple requested the court to reject the SEC's plea on charging a $1.95B fine from the firm. Instead, the company behind the XRP token asked for a small penalty of $10 million.
In March 2024, the SEC requested the court to charge a $1.95B fine from Ripple. According to the regulatory body, the penalty would serve as a means to deter other crypto platforms from repeating Ripple's actions.
In response, Ripple Labs submitted a court filing voicing its disagreement with the SEC's proposal. Ripple's legal team criticized the SEC's remedial requests, citing that the agency's proposed penalties exceed what is warranted.
Ripple also emphasized that the SEC's demands for disgorgement surpass the amount obtained from other defendants in cases pertaining to crypto assets. Addressing the issue of gains from institutional sales, Ripple asserted that it had no profits to disgorge, and requested the court to reject the SEC's claims "in their entirety."
The Ripple vs. SEC case is one of the longest-running legal battles in the crypto space. The lawsuit dates back to 2020, when the regulatory body sued the company for illegally offering unregistered securities in the form of XRP tokens. In July 2023, the court finally ruled that although the sale of XRP tokens to crypto platforms did not breach securities laws, Ripple directly selling the coins to institutional investors counted as securities transactions.
