NOIDA (CoinChapter.com)— In the latest update in the Ripple SEC lawsuit, Ripple contests the penalty in its response to the Securities and Exchange Commission’s (SEC) request for nearly $2 billion, according to a court document filed late on April 22.
The filing comes in reaction to the SEC’s assertion last month that Ripple should face close to $2 billion in fines for its sales of XRP to institutional investors. However, Ripple contended that the appropriate penalty should be nearer to $10 million
Ripple’s Contests in Response To SEC Remedies
In its filing, Ripple acknowledged the court’s decision but contested the extensive remedies proposed by the SEC, which include broad injunctive relief, significant disgorgement of profits, and substantial civil penalties. Ripple argued that the remedies are disproportionate given the factual basis of the case.
Furthermore, Ripple argued against the injunction on the basis that it had adjusted its operations to ensure compliance with legal standards, thereby mitigating the likelihood of future violations.
Additionally, Ripple challenges the SEC’s call for disgorgement, noting the absence of demonstrated pecuniary harm to investors, which recent Supreme Court decisions have identified as a prerequisite for such financial recovery.
Moreover, Ripple argued that the SEC’s proposed remedies exceed what is necessary to correct the violations and veer into punitive territory. Ripple underscored its ongoing compliance efforts and argued against the punitive nature of the SEC’s demands.
Legal analyst Fred Rispoli provided insights into Ripple’s strategic compliance adjustments post-ruling. Rispoli critiqued the SEC’s aggressive penalty demands and predicted a significant reduction in the final penalty. The legal analyst predicted that Ripple might only pay around $25 million or less.
Moreover, Rispoli suggested that Ripple’s strategic adjustments, such as relocating significant operations offshore and modifying its product offerings in the US, demonstrated a strong compliance posture.
In fact, Rispoli criticized the SEC for the regulator’s overly aggressive and disproportionate pursuit of penalties against Ripple, which he believes could be detrimental to the broader crypto industry.
XRP Price Fails To Hold Onto $0.55
The XRP price dropped below $0.55 on April 23 after the token dropped over 2.5% to reach a daily low near $0.542. The bears are likely defending the supply zone near $0.6. The news of Ripple contesting and appealing for a lower penalty might have lowered investor confidence in XRP’s price action.
Breaking above the immediate resistance might help XRP price rally to the resistance near $0.64 before the Ripple token pares gains.
On the other hand, a drop in prices would see XRP fall to the support near $0.51. An unfavorable outcome in the Ripple SEC lawsuit could force the token to test support near $0.455.
The relative strength index for the Ripple token remained neutral, with a score of 48.74 on the daily charts.
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