Ripple Argues for Penalty Reduction to $10 Million, Cites Terraform’s SEC Settlement in Appeal

Ripple, a leading blockchain and cryptocurrency company, has recently filed an appeal with the United States Securities and Exchange Commission (SEC) to reduce the penalty it faces for allegedly violating securities laws. The company is seeking a reduction of the penalty from $35 million to $10 million, citing the SEC's recent settlement with Terraform Labs, the developer of the Terra blockchain and cryptocurrency, which was fined $25 million for similar violations.

Ripple's appeal is based on the argument that the SEC's enforcement actions against the company are inconsistent and unfair. The company claims that the SEC has been inconsistent in its application of securities laws, particularly in the context of blockchain and cryptocurrency. Ripple argues that the SEC's decision to fine Terraform Labs $25 million for similar violations is evidence that the agency's enforcement actions are not based on a consistent or fair standard.

Ripple also argues that the SEC's enforcement actions against the company are overly broad and could have a chilling effect on innovation in the blockchain and cryptocurrency space. The company claims that the SEC's actions could discourage companies from developing and offering new blockchain and cryptocurrency products, which could harm the overall development of the industry.

In addition to the penalty reduction, Ripple is also seeking a stay of the SEC's enforcement action against the company. The company argues that the SEC's enforcement action is based on an incorrect legal theory and that the agency's actions are not supported by the evidence. Ripple claims that the SEC's enforcement action is an overreach of the agency's authority and that it is an attempt to regulate the blockchain and cryptocurrency space through a backdoor.

The SEC has not yet responded to Ripple's appeal, but the company's arguments are likely to be closely watched by the blockchain and cryptocurrency community. The outcome of Ripple's appeal could have significant implications for the future of blockchain and cryptocurrency regulation in the United States.