• The SEC responded to Ripple's letter relating to the TFL lawsuit ruling.
• In its letter, the SEC stated it might impose fines of as much as $102.6 million on Ripple.
• This determine represents a big discount from the unique request of $2 billion.

Within the ongoing authorized battle between Ripple and the U.S. Securities and Alternate Fee, the regulator has responded to Ripple’s problem to a proposed $2 billion positive. The SEC’s response, filed on Friday, cited a latest settlement in one other high-profile case involving TerraForm Labs to additional make clear the SEC’s place on the problem.

The regulator printed its response in a letter to U.S. District Decide Analisa Torres on Friday, lawyer James Phelan famous on X Platform (previously Twitter).

By the use of background, Ripple filed a letter on June 13 in help of its opposition to the SEC’s earlier $2 billion penalty advice. Ripple highlighted that, in line with the TFL Consent Decree, the defendants had agreed to a settlement that included $3.58 billion in disgorgement and a civil penalty of $420 million.

Ripple argued that the positive represents 1.27% of TFL's complete income of $33 billion, which is considerably decrease than what the SEC is in search of from Ripple. Moreover, Ripple identified that TFL's lawsuit concerned two fraudulent acts that resulted in losses of $40 billion, whereas the courtroom discovered no fraud in Ripple's lawsuit.

In a letter on Friday, the SEC countered that the TFL consent decree was a settlement and due to this fact of restricted worth in figuring out reduction. The SEC alleged that Ripple failed to think about a number of elements, together with TFL's chapter, the destruction of cryptocurrency pockets keys, and compensation for investor losses. The SEC said:

“The SEC thought-about all of those elements in agreeing to the settlement and cited them as related for courtroom approval beneath relevant legislation.”

Moreover, the SEC famous that Ripple by no means agreed to any of the phrases cited within the TFL lawsuit. The regulator argued that the TFL settlement was irrelevant in figuring out Ripple's positive, alleging that Ripple has not admitted to violating securities legal guidelines and is continuous to have interaction in related conduct.

Moreover, the SEC criticized TFL's comparability of its $420 million civil penalty to Ripple's complete income of $33 billion. The SEC argued that the penalty ought to have been in comparison with TFL's complete earnings of $3.587 billion, leading to a ratio of 11.7%. Making use of this ratio to Ripple's complete earnings of $876.3 million would lead to a possible penalty of $102.6 million, far exceeding Ripple's alleged $10 million restrict.

Following the SEC’s revised calculation, members of the XRP group speculated that the SEC v. Ripple case could also be heading for a settlement.