An important point has captured the attention of the cryptocurrency community recently in the ongoing process between the US Securities and Exchange Commission (SEC) and Ripple Labs. The move suggests an uneven approach by the regulator to the cryptocurrency industry.
Law professor JW Verret recently noted that the SEC generally collects an 11% percentage for unregistered sales claims, however, the regulator wants the 300% percentage in the Ripple case. For the legal specialist, this search for SEC suggests a certain “abuse of power” by the industry regulator in the USA.
In a shared post on April 3, Verret stated: “The SEC typically collects 11% of unregistered sales claims, but in Ripple's case they want 300%. This is what abuse of power looks like.”
Still on the occasion, the law professor shared a graph showing the disproportionate amount of resources that the SEC demanded from the company, comparing it to the funds that the regulator collected in other cases, including Telegram, Kik Interactive, LBRY and the cryptocurrency exchange Kraken.
The SEC typically collects 11% of unregistered sales claims, but in Ripple case they want 300%. This is what abuse of power looks like. pic.twitter.com/SlhsxI5umZ
— BlockProf🛡 (@JWVerret) April 3, 2024
SEC Files Billion Dollar Fine Claim Against Ripple Labs
The United States Securities and Exchange Commission (SEC) has set its sights on a whopping $2 billion fine against Ripple Labs, the driving force behind the cryptocurrency XRP. This bold move recently, announced by Ripple's chief legal officer Stuart Alderoty, marked yet another chapter in the ongoing confrontation between regulators and crypto entities.
Alderoty shared insights into the SEC's demand, saying, “As you will see when the SEC summary is made public tomorrow, they are asking the judge for $2 billion in fines and sanctions. Our answer will be available next month, but as we have all seen time and time again, this is a regulator that operates on statements that are false, ill-defined and designed to mislead. They stayed true to form here too. Instead of faithfully enforcing the law, the SEC continues to attempt to punish and intimidate Ripple and the industry at large. We believe the court will approach the resolution phase fairly.”
