SEC Seeks $2 Billion in Fines and Penalties from Ripple Labs, Says Garlinghouse

Ripple Faces Legal Challenge

Ripple is currently facing a significant legal challenge from the U.S. Securities and Exchange Commission (SEC) as they seek $2 billion in fines and penalties against the company.

SEC’s Intentions

Ripple Labs CEO Brad Garlinghouse revealed on social media that the SEC is planning to request $2 billion in a lawsuit that, according to him, did not involve any allegations of fraud or reckless behavior.

Confirmation by Ripple’s Chief Legal Officer

Stuart Alderoty, Chief Legal Officer at Ripple, confirmed that the SEC’s brief outlining the fine request will be made public soon. He criticized the SEC for its false statements and misleading tactics.

Industry Response

Both Garlinghouse and Alderoty expressed their concerns about the SEC’s approach, with Garlinghouse specifically calling out the Commission’s Chair Gary Gensler for alleged wrongdoings.

Coinbase Lawsuit Against SEC

In a separate development, Coinbase filed a lawsuit against the SEC on March 11, seeking clear guidelines for the crypto industry. The lawsuit highlighted the lack of regulatory clarity from the SEC, leading to operational challenges for industry players.

Support from Industry Players

Entities like Paradigm and the Crypto Council for Innovation have shown support for Coinbase’s lawsuit by submitting amicus briefs to advocate for clearer regulations in the crypto space.