SEC vs Ripple Battle Reaches Penultimate Conclusion, Settlement in Millions

The Securities and Exchange Commission (SEC) has responded to Ripple's recent letter regarding the TerraForm Labs Consent Judgment. The SEC's response requests a substantial settlement amount of $102.6 million.

Ripple has criticized the SEC for demanding unreasonably high penalties compared to the TerraForm Labs case. In the latter, the SEC imposed a fine that was merely 1.27% of the total involved.

The SEC had previously charged TerraForm Labs and Do Hyeong Kwon with conducting a multi-billion dollar crypto asset securities fraud involving an algorithmic stablecoin, among other crypto asset securities.

Ripple's Notice of Supplemental Authority alleges that the SEC is biased and has imposed excessive penalties. The company emphasizes the stark difference in treatment between its case and that of TerraForm Labs, which it considers an unfair enforcement approach.

This latest response from the SEC could pave the way for a settlement that might finally resolve the longstanding legal battle. It could provide clarity on XRP's regulatory status and potentially set a precedent for future crypto asset securities cases.