The ongoing legal battle between Ripple and the US SEC has taken a dramatic turn, with the regulator's demand for a staggering $2 billion fine seemingly abandoned. Ripple's Chief Legal Officer, Stuart Alderoty, has expressed relief, citing the SEC's recent filing as evidence of their change in stance.

The Backdrop

The drama began with the settlement between the SEC and bankrupt Terraform Labs, which agreed to a $4.47 billion settlement. This news sparked Ripple to file a notice of Supplemental Authority, arguing that the SEC's fine is unrealistic and disproportionate to the volume of trade involved in the lawsuit.

SEC's Response

The SEC countered by noting that it charged Terraform Labs a $4.47 billion settlement due to the firm's bankruptcy. Ripple's CLO, Stuart Alderoty, responded by pointing out that Judge Analisa Torres had previously ruled that XRP is not a security, and that there were no victims in Ripple's XRP sales. He also noted that the SEC's decision to settle with Terraform Labs for a lower amount due to the firm's bankruptcy shows bad faith towards Ripple's thriving business.

The Verdict

The SEC's recent filing has led to a significant shift in the legal battle. The regulator's claim that Ripple has not agreed to any penalty and that it deserves to pay at least $102.6 million, rather than the $10 million it is arguing, has been seen as a sign that the SEC has abandoned its demand for $2 billion. This development has brought a sense of relief to Ripple's legal team, who see it as a victory in their ongoing fight against the SEC.

Conclusion

The legal battle between Ripple and the SEC continues, but the recent developments suggest that the regulator's demand for $2 billion has been significantly reduced. The outcome of this case will have significant implications for the future of cryptocurrency regulation and the blockchain industry as a whole.