Ripple Vs. SEC Settlement: Here Are The Things You Should Know Going Forward
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The long-running legal battle between Ripple and the US Securities and Exchange Commission (SEC) ended (at least for now) following Judge Analisa Torresâ recent ruling awarding a $125 million penalty against the crypto firm. The verdict will have a massive impact on both parties, while an appeal from both sides is also on the cards.Â
What Next For Ripple And The SEC
Ripple will have to pay the SEC a $125 million fine for violating securities laws. This violation resulted from the firmâs sale of XRP to institutional investors without first registering these transactions as investment contracts. Last year, Judge Torres ruled that Ripple violated securities laws through its institutional sales, although she declared that XRP isnât a security in itself.Â
Based on the rulings, this case, which began in December 2020, is more of a win for Ripple than for the SEC. Although Ripple will have to pay the SEC $125 million, the penalty is well below the $2 billion the Commission initially proposed. Ripple proposed a penalty of $10 million, but the crypto firm will have no problem paying the $125 million.
During an interview with CNBC, Rippleâs Chief Legal Officer (CLO) Stuart Alderoty indicated that his firm intends to pay the $125 million and move on with their business as soon as possible. The court order mandates Ripple to pay this fine within thirty days. However, Alderoty didnât state exactly when the payment would be made other than confirming that it would be made from their balance sheet.Â
Besides the $125 million penalty, it is worth mentioning that Judge Torres also awarded an injunction against future violations.
