John Verret (J.W.Verret) believes that the protracted litigation between the SEC and Ripple Labs over the classification of the XRP cryptocurrency casts doubt on the legality of the regulator's requirements.
The requirement to punish Ripple by 300% of the amount of unregistered sales significantly exceeds similar penalties applied by US courts for such financial violations. The lawyer suggests that in this way the SEC is not only abusing its power, but also intends to achieve a verdict that is resonant for the crypto industry.
John Verret illustrated his findings by comparing the satisfied SEC requirements with previously reached agreements with Telegram, Kik Interactive, LBRY and Kraken. The largest fine, according to Verret, was paid by Telegram messenger ($1.24 billion for $1.7 billion of unregistered sales).
The SEC is demanding through the court to recover from Ripple a fine of $ 2 billion for the sale of assets worth $ 729 million, which the regulator considered unregistered securities.
Earlier, Forbes journalists questioned the usefulness of the Ripple ecosystem, in particular, the XRP Ledger (XRPL) and XRP coins, and also assigned the Ripple blockchain the status of a "zombie network".