Ripple vs. SEC Major Update June 18: Commission Takes a Hit

TL;DR

David Hirsh, head of the SEC’s Crypto Asset and Cyber ​​Unit, recently resigned, denying rumors of joining a Solana-based marketplace. His departure comes as the SEC’s lawsuit against Ripple moves forward, with the regulator recently reducing its proposed penalty to $102.6 million. Crypto expert resigns

David Hirsh, a longtime member of the US Securities and Exchange Commission (SEC), announced on LinkedIn that he is resigning from the agency. He served as head of the Cyber ​​and Crypto Assets Unit in the Enforcement Division, and spent nine years with the regulator.

Hirsh took the opportunity to thank all his colleagues, mentors and friends for their support over the years, highlighting the work that has been done:

“As I often say, implementing values ​​is a team sport, and that was true during my tenure. Every success I was a part of was a direct result of collaboration and combining efforts to achieve a common goal. Thank you all!”

He revealed that his career will enter a new chapter soon, but first, he will devote his time to family and travel. Some reports hinted that Hirsh has resigned from the SEC to start working for pump.fun, a Solana-based marketplace that allows users to create and distribute their own tokens. The American denied the rumours, calling them “false”.

Good news for Ripple?

Hirsh’s resignation comes at a crucial time with the lawsuit between the SEC and Ripple entering its trial phase. The dispute between the entities has been ongoing since December 2020, when the watchdog accused the company and some of its executives of conducting an unregistered securities offering by selling its XRP token.

More recently, the two sides have clashed over the size of Ripple’s potential penalty. The SEC initially asked for a fine of $2 billion on the company, while the latter argued that it should not exceed $10 million. A few days ago, the agency softened its tone, proposing a penalty of $102.6 million:

“Ripple avoids comparing the Terraform settlement penalty to the gross profit from the infringing conduct. This ratio ($420 million / $3.587 billion) is significantly higher: 11.7%. Applying it to the 876, $3 million in gross profits, the SEC is asking the court here to disburse it, resulting in a much larger figure, a penalty of $102.6 million, than the $10 million cap it insists on Ripple.

Some might see the SEC as the underdog in the case, given the three partial court victories secured by the company throughout 2023. XRP’s price reacted positively to each victory, meaning a decisive victory for in Ripple may cause substantial volatility again. For those curious to learn more about the lawsuit and its impact on Ripple’s native token, check out our video below:

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