Welcome to Extreme Investor Network, where we provide you with unique insights and analysis on the latest news in the stock market and trading world. Today, we are diving into the final court filings in the SEC vs. Ripple case, where Judge Analisa Torres will soon make a decision on the punishment for breaking US securities laws.
In July 2023, Judge Torres ruled that Ripple breached Section 5 of the US Securities Act for failing to register XRP as a security in sales to institutional investors. Now, there is a significant disparity between the SEC and Ripple’s expectations in terms of the penalty.
The SEC is requesting a hefty penalty of $2 billion, including disgorgement, prejudgment interest, and a civil penalty, along with a prohibition on selling XRP to institutional investors. On the other hand, Ripple is arguing that the civil penalty should not exceed $10 million, citing specific sections of the Securities Act.
Ripple believes that they fall under tier one of the penalties, as they were not accused of fraud or manipulation. They also referenced the dismissal of charges against key figures in the case. However, the SEC is adamant that Ripple continued to breach securities laws after the initial complaint and should face a much larger penalty.
Judge Analisa Torres will ultimately decide the outcome of this case, considering whether Ripple’s actions constitute a violation of securities laws and the appropriate penalty to impose. Stay tuned to Extreme Investor Network for the latest updates on this crucial case in the stock market world.
