In the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), the commission’s recent remedy request has faced backlash from the crypto community. The SEC’s demand for a staggering $1.95 billion in fines and penalties against Ripple has drawn criticism from XRP enthusiasts, who view it as an excessive exercise of regulatory power.

SEC’s Remedies Request

On March 22, the SEC submitted its remedied-related court filing, demanding Ripple Inc. to pay $1.95 billion in fines and penalties. This amount far exceeds the sum Ripple gained from its alleged unregistered securities offering through XRP institutional sales, which totaled $728.9 million from 2013 to 2020.

Members of the XRP community have voiced their discontent with the SEC’s request, characterizing it as an indication of bias against Ripple. 

Law professor J. W. Verret highlighted the significant disparity in the SEC’s demand compared to similar cases involving other entities. While the SEC typically aims for an 11% recovery in such cases, its request for a 300% recovery from Ripple has raised eyebrows.

Criticism of SEC’s Actions

Australian-based lawyer Bill Morgan joined the chorus of criticism, denouncing the SEC’s demand as an abuse of regulatory power. 

Morgan suggests, “It is very abusive. The SEC must loathe Ripple for fighting so hard and hold up its plan to control crypto for 3.5 years.”

The legal battle continues despite Ripple’s victories in the case, including the court’s ruling that XRP is not a security and the dropping of charges against its executives. The outcome of the SEC’s remedy request remains uncertain, with Ripple expected to file its opposition later this month.

The court’s decision on the SEC’s demand could have far-reaching implications for Ripple and the broader crypto industry. Meanwhile, Ripple’s foray into the stablecoin space has been overshadowed by the ongoing legal proceedings, contributing to market uncertainty surrounding XRP.

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