Ripple Labs is now embroiled in a $2 billion legal dispute with the Securities and Exchange Commission (SEC), as stated by Ripple’s chief legal officer, Stuart Alderoty.
Alderoty condemned the SEC for using deceptive strategies and accused it of attempting to frighten both Ripple and the broader industry.
Ripple CEO Brad Garlinghouse expressed disapproval of the Securities and Exchange Commission’s (SEC) request for $2 billion, deeming it exorbitant. He referenced the DEBT Box case, in which Judge Robert Shelby reprimanded the SEC for engaging in fraud.
The current legal dispute between the SEC and Ripple centers on the classification of Ripple’s sales of the XRP coin as unregistered securities transactions.
A recent court decision determined that Ripple’s direct sales of XRP did not breach the regulations for registering securities. However, it suggested that the company’s sales to institutional investors might potentially be in violation of these rules.
This continuing legal dispute emphasizes the complex regulatory landscape around crypto and the difficulties encountered by both authorities and industry stakeholders.
The market eagerly awaits Ripple’s answer to the SEC’s charges, since it will provide further clarity on this prolonged legal spat.
