The SEC is demanding a substantial 300% of unregistered sales from Ripple

The SEC is demanding a substantial 300% of unregistered sales from Ripple, sparking discussions among legal experts about the regulator’s approach. Law professor J. W. Verret highlighted the disproportionate nature of the SEC’s request, noting that while the typical collection rate for unregistered sales claims is 11%, the SEC is seeking 300% from Ripple. Verret described this as an abuse of power, underscoring the unequal treatment.

To illustrate the disparity, Verret compared the SEC’s demands in the Ripple case with its actions in other cases involving companies like Telegram, Kik Interactive, LBRY, and Kraken. For instance, Telegram had to pay $1.24 billion for $1.7 billion in unregistered sales, while LBRY paid only 1%, Kik paid 5%, and Kraken paid 20.41%.

In contrast, the SEC’s requested remedies in the Ripple case amount to a staggering $2 billion in fines and penalties, significantly higher than the $729 million in institutional XRP sales deemed unregistered securities by the court. This disparity has raised concerns among legal experts, including Bill Morgan, who described the SEC’s demands as abusive and suggested that the regulator might hold a grudge against Ripple for challenging its control over the crypto industry for 3.5 years.

Meanwhile, the XRP token, central to the ongoing legal battle, experienced a decline in value following the unfavorable news about Ripple. As of the latest data, XRP was trading at $0.5778, marking a 2.46% decrease for the day, and recording a 7.21% drop over the previous week, with a 9.63% loss over the past month.