For its institutional XRP sales, the SEC is suing Ripple for a $770 million fine. Analysts, however, predict that Ripple will pay a far less amount—possibly as little as $38.5 million.
The SEC will have a tough time getting Ripple to pay them a sizable fine if they are unable to demonstrate that XRP investors have suffered losses. Since it would relieve XRP of a significant regulatory burden, this might be advantageous for the asset’s future.
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Analyst: Ripple Will Pay Far Less Than Expected
According to John Deaton, the attorney representing Ripple, the SEC is requesting a $770 million fine from the business in exchange for the resolution of the unregistered securities sale claims in the continuing legal dispute between the SEC and Ripple. This penalty may be reduced in the future.
Ripple Faces $38.5M Penalty: A Fraction of SEC’s Demand,Ripple Faces $38.5M Penalty: A Fraction of SEC’s Demand
In light of the SEC’s prior claims that up to 95% of Ripple’s XRP sales may occur outside of the United States, Deaton calculates that the proposed $770 million fine may be reduced by around $731.5 million.
As a result, Ripple could only be subject to a $38.5 million fine. Additionally, according to Deaton, Ripple plans to claim that any fines would be offset by allowable business expenditures.
Moreover, Deaton argues that Ripple would have won the lawsuit 99.9% of the time if it ended up paying $20 million or less. He contends that, contrary to what others have said, the court’s decision in favour of Ripple was more akin to a 90-10 result.
Jeremy Hogan Participates
Jeremy Hogan, an attorney, offers his thoughts on possible points of contention that Ripple might bring up in the remedies briefing. Hogan cites the SEC v. Liu case as support for his argument that disgorgement ought to be “fair” and determined by the violator’s net earnings as opposed to gross. Ripple is therefore anticipated to offset any possible fines with its allowable business costs.
Hogan adds that sales that take place beyond the U.S. jurisdiction of the SEC could not be included in the overall amount.
Now what?
On November 9, both sides will compete in a final face-off in which they can argue for or against the appropriate sanction for Ripple’s sales of XRP to institutional customers.
Hogan also draws attention to a recent case from the Second Circuit that emphasises the need for disgorgement to compensate victims for their monetary losses; this ruling may play a role in the next remedies briefing.
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Price Impact of XRP
XRP had an amazing 27% increase last week despite the SEC’s penalty showdown. This coincided with Ripple’s crucial Swell conference in Dubai, which fueled rumours of a game-changing IPO announcement.
XRP made a positive rise in the previous day or so, surpassing a three-month high at $0.68. Furthermore, there was a notable surge in XRP trading volume, which in only one day reached $2.495 billion—a phenomenal 162.41% increase over the value of the previous day.
Ripple Faces $38.5M Penalty: A Fraction of SEC’s Demand,Ripple Faces $38.5M Penalty: A Fraction of SEC’s Demand,Ripple Faces $38.5M Penalty: A Fraction of SEC’s Demand , Ripple coin Crypto news, Ripple coin News