Ripple Could Potentially Face a $38.5 Million Fine, Much Lower Than the SEC’s Demand!
It appears that Ripple may be facing a significant fine, but analysts believe that the amount will be far less than what the SEC is seeking. The SEC is currently demanding a penalty of $770 million from Ripple for their sales of XRP. However, experts speculate that Ripple could end up paying as little as $38.5 million.
The key factor in determining the final penalty will be whether the SEC can prove that investors in XRP have actually been harmed. If they are unable to provide sufficient evidence of harm, it will be challenging for them to justify a large penalty. This could have positive implications for the future of XRP, as it would remove a major regulatory obstacle for the cryptocurrency.
Ripple’s Attorney Predicts a Lower Penalty
According to Ripple’s attorney, John Deaton, the SEC is pushing for a $770 million penalty in the ongoing legal battle between the agency and Ripple. However, Deaton believes that a significant portion of Ripple’s XRP sales were conducted outside of the United States, which could potentially reduce the penalty by around $731.5 million. This would leave Ripple with a potential fine of only $38.5 million. Deaton also suggests that Ripple will seek to deduct legitimate business expenses from any penalties imposed.
Attorney Jeremy Hogan also weighs in on the matter, pointing to the SEC v. Liu case, which emphasized the importance of basing disgorgement penalties on net profits rather than gross. This suggests that Ripple may be able to deduct its legitimate business expenses from any potential penalties. Additionally, sales conducted outside of the SEC’s jurisdiction may be excluded from the total sum.
What’s Next for Ripple?
The final decision on the penalty will be made on November 9, when both parties will present their arguments on the appropriate fine for Ripple’s XRP sales. Recent rulings have indicated that disgorgement should compensate victims who have suffered financial losses, which may impact the final penalty.
XRP Price Impact
Despite the impending penalty from the SEC, XRP has experienced a significant surge in value over the past week. The cryptocurrency has seen a 27% increase and has broken through a three-month high at $0.68. Trading volume for XRP has also seen a substantial rise, reaching $2.495 billion within 24 hours, representing a 162.41% increase from the previous day.
Preparing for the SWELL Event
The upcoming SWELL event in Dubai, scheduled for November 8-9, could potentially reveal significant developments for Ripple. Speculations include the possibility of an IPO announcement, VARA license, CBDC negotiations, stablecoin and tokenization work, and user growth. This event could shape Ripple’s future and determine its identity in the payment industry.
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Elena is an expert in technical analysis and risk management in the cryptocurrency market. With over 10 years of experience in writing, she is a dedicated journalist passionate about researching new insights in the crypto world.