Ripple, the cross-border payment protocol, has contested the United States Securities and Exchange Commission’s (SEC) request to impose a $2 billion fine against the blockchain company. In a recent filing, Ripple urged the court to deny the SEC’s requests for an injunction, disgorgement, and pre-judgment interest, arguing that the penalty should not exceed $10 million.
The filing emphasized that Ripple intends to adhere to regulatory guidance in the future and opposes the SEC’s “Draconian” remedial requests, which it considers unreasonable and ungrounded in law or principle. Ripple revealed that the SEC requested $876 million in disgorgement, $198 million in pre-judgment interest, and another $876 million in civil penalties, totaling nearly $2 billion.
Ripple described the requested fine as disproportionate and argued that $10 million is a more reasonable amount based on a portion of their actual revenues. The company highlighted that comparable digital-asset cases warranted similar penalties without findings of recklessness or fraud.
Ripple’s opposition to the SEC’s request is another step in the ongoing legal battle between the two parties and the broader regulatory uncertainty facing the cryptocurrency industry in the United States. As the case progresses, the final outcome will likely have significant implications for Ripple and the broader crypto market, shaping regulatory enforcement and compliance efforts in the sector.
