XRP Lawsuit Update Today: Here’s How the Ripple vs. SEC Lawsuit Ended and Its Impact on XRP Price
The post XRP Lawsuit Update Today: Here’s How the Ripple vs. SEC Lawsuit Ended and Its Impact on XRP Price appeared first on Coinpedia Fintech News
Finally, XRP is not a Security! This is a big win for the entire XRP community, which believes in Ripple’s commitment to crypto. In a landmark decision, a federal judge has issued a split ruling in the long-running legal tussle between Ripple and the SEC over XRP.
XRP Not a Security: Court Rules
Judge Analisa Torres ruled that while some of Ripple’s sales of XRP did indeed constitute unregistered securities offerings, XRP itself is not a security. This decision provides a major win for Ripple and sends ripples through the cryptocurrency market, boosting XRP’s price dramatically.
Ripple’s $125M Fine: Win or Loss?
While Ripple celebrated the classification of XRP, the news wasn’t all good. The court imposed a $125 million civil penalty on Ripple, a far cry from the $2 billion the SEC had demanded but still substantial. The penalty also came with an injunction preventing future securities law violations by Ripple.
Ripple CEO Brad Garlinghouse hailed the court’s ruling as a major victory, noting that the SEC’s $2 billion demand was reduced by 94%. He stated that this decision removes SEC’s headwinds against XRP and clarifies Ripple’s growth.
District Judge Analisa Torres, of the Southern District of New York, issued the fine and an injunction against future securities law violations. This decision follows her July 2023 ruling that Ripple’s direct sale of XRP to institutional clients violated securities laws. The $125 million fine is substantially lower than the SEC’s original demand of $1 billion in disgorgement, prejudgment interest, and $900 million in civil penalties.
Crypto Reaction
In response to the news, Marc Fagel highlights that the court’s penalty for Ripple was significantly higher than what Ripple argued for. Specifically, Ripple believed the appropriate penalty was much lower, but the court imposed a fine that was 1150% higher than Ripple’s suggested amount.
While the entire XRP community celebrated the news, one of the crypto analysts known as Krippenreiter urged caution, suggesting waiting for an SEC statement before celebrating, but acknowledged it feels like progress after a long waiting period.
A New Dawn for Crypto Regulation?
This ruling offers much-needed clarity in the murky waters of cryptocurrency regulation. The decision could shape how other digital assets are classified, providing a clearer path forward for the industry. However, the SEC’s continued pursuit of some aspects of the case suggests that the regulatory battles are far from over.
However, Judge Torres emphasized the potential for Ripple to “push the boundaries” of compliance, necessitating the injunction to prevent future violations. The ruling requires Ripple to file a registration statement for future securities sales. The SEC is expected to appeal the July 2023 ruling following the imposition of this penalty.
The Road Ahead: Ripple’s Battle Continues
Despite the partial victory, Ripple’s journey isn’t over. The SEC might appeal the decision, meaning the legal drama surrounding XRP could continue. The ruling boosts market confidence and provides a precedent that could influence future regulatory actions.
Why This Matters
This historic ruling declares that XRP is not a security, providing crucial regulatory clarity and boosting market confidence with a price surge. The judge’s decision to reduce the penalty amount for Ripple suggests a more balanced regulatory approach, though ongoing SEC actions highlight the suppressing nature of manipulative regulations.
In a related settlement, Ripple resolved charges concerning CEO Brad Garlinghouse and other executives after the SEC’s motion for an interlocutory appeal was denied last year. Following the judgment, the price of XRP rose by around 2%, reflecting a slight market uptick.
