The U.S. Securities and Exchange Commission says that the penalty that Ripple is willing to pay after a long drawn out legal battle would be a “slap on the wrist that neither punishes nor deters” wrongdoing.The regulator The SEC said that Ripple’s offer would not deter other cryptocurrency businesses from violating Section 5 of the Securities Act, which requires issuers to file a registration statement when publicly offering securities.“Given the nearly $1 billion Ripple gained violating Section 5 [and] the multi-billion-dollar business it built selling XRP—accounting for the value of Ripple’s massive XRP holdings and its cash on hand—the ‘low’ penalty Ripple demands would be a ‘slap on the wrist’ that neither punishes nor deters,” the filing said. “To the contrary, it would encourage other crypto asset issuers to violate Section 5 by making it a remarkably lucrative endeavor, and thus deprive investors the disclosures Congress mandates, as a mere ‘cost of doing business,’” it continued.Ripple’s chief legal officer Stuart Alderoty on Tuesday slammed the regulator in a post on Twitter. “More of the same from the SEC—failing to faithfully apply the law and trying to pull the wool over the Judge’s eyes,” he wrote. More of the same from the SEC — failing to faithfully apply the law and trying to pull the wool over the Judge’s eyes. The good news is that we are closer than ever to putting this lawsuit behind us, though unfortunately, many are just starting the journey. We trust the Court… https://t.co/JGhxAtOuk1— Stuart Alderoty (@s_alderoty) May 7, 2024Ripple—whose founders were behind the seventh biggest cryptocurrency But last year, Ripple The ruling However, the judge also said that $728 million worth of contracts for institutional sales The SEC is seeking a $2 billion fine for that violation as a result.Edited by Ryan Ozawa.
