Ripple Labs has ramped up its defense against the U.S. Securities and Exchange Commission (SEC), challenging the SEC’s massive $2 billion fine demand with a proposal to limit it to $10 million. Andrew J. Ceresney from Debevoise & Plimpton LLP, representing Ripple, highlighted two major points in a letter to Judge Analisa Torres, hoping to change the court’s perspective.

Ripple’s Main Arguments

Ripple’s defense focuses on the argument that its current financial condition should not influence penalties for past actions. Ripple argues that its financial status, reviewed years after the supposed violations, is not relevant to the case. They emphasize that recent financial documents of private companies should remain confidential, citing legal precedents to support their stance.

Another key issue is the relevance of Ripple’s old contracts, which the SEC deems outdated. Ripple’s CFO, Jonathan Billich, argues that since sales methods have changed and current XRP sales do not mirror past practices, revealing these old contract terms could unfairly benefit future competitors.

Securities Law Dispute

Ripple also disputes the SEC’s claim that XRP prices must be publicly disclosed under securities law, especially since the court has already determined that XRP is not a security. Ripple’s defense argues that this ruling makes the disclosure of past contract prices irrelevant to the case.

As the legal battle continues, the role of Andrea Fox as a summary or expert witness, as decided by Magistrate Judge Sarah Netburn, remains pending for Judge Torres’ consideration during the resolution phase.

Ripple's thorough defense underscores its commitment to safeguarding its financial privacy and the confidentiality of past contracts. By stressing the evolution of its sales methods and arguing that its current financial state is unrelated to past actions, Ripple seeks to reduce penalties and protect its business interests. The outcome of this prominent case will have significant effects on the cryptocurrency industry and the regulation of digital assets. As the situation unfolds, XRP is trading at $0.51.