The US Securities and Exchange Commission (SEC) appears to be targeting Ripple’s proposed stablecoin in its latest court filing against the crypto company.
In its May 7 redacted remedies reply brief, the regulator described the proposed stablecoin as an “unregistered crypto asset” and further evidence that the company will continue to engage in unregulated activities if there is no permanent injunction against it.
Ripple revealed plans to issue a stablecoin in April but has not provided additional details about the token since then.
SEC argues for a substantial fine
According to the SEC, Ripple’s primary business since its inception has been the unregistered institutional sales of XRP, and it will continue to do so if the injunction is not granted.
The regulator also disagreed with the company’s assurance that it would not violate US securities law because it has licenses in other jurisdictions. SEC lawyers wrote:
The SEC seeks almost $2 billion in fines from Ripple. However, the crypto firm contends that the Court should reject this demand, proposing a civil penalty not exceeding $10 million.
Ripple’s response
Ripple chief legal officer Stuart Alderoty has criticized the SEC’s filing as baseless, saying it was another example of the regulator’s failure to apply the law.
Alderoty also noted the SEC’s disregard for crypto frameworks in other jurisdictions. He said:
