The Securities and Exchange Commission (SEC) has turned down Ripple’s proposed $10 million settlement, deeming it insufficient. The SEC argues that comparing it to the Terraform Labs settlement is misleading and not appropriate for determining penalties.
In the midst of Ripple’s ongoing legal battle with the SEC, tensions have heightened. The SEC’s rejection of Ripple’s settlement proposal has sparked a demand for a larger penalty. The SEC insists that the comparison to the $4.47 billion Terraform Labs settlement is not a fair benchmark for determining penalties.
In response to Ripple’s letter regarding the Terraform Labs Consent Judgment, the SEC has issued a statement. Jorge Tenreiro, representing the SEC, points out that settlements are not reliable benchmarks in litigated contexts due to unique case circumstances. He highlights the differences between the Terraform and Ripple cases, emphasizing the financial conditions and willingness to cease violative conduct. The SEC disputes Ripple’s comparison of penalty ratios, asserting that they are misleading.
The SEC maintains that settlements have limited value in litigated contexts and argues that a larger penalty is necessary to punish and deter Ripple’s ongoing violations. The SEC believes that only a substantial penalty will meet the objectives of the civil penalty statutes and hold Ripple accountable.
Despite the legal challenges, Ripple’s XRP is currently valued at $0.4934, experiencing a 1.61% decrease in the past day and a 2.96% increase over the past week. The XRP price chart below illustrates the recent fluctuations in value.