Judge rules XRP is not a security ending a two-year legal battle.
Ripple must pay $125 million and follow future regulations for securities.
XRP price jumps nearly 16% following the court decision.
The SEC's action was settled when a court ordered Ripple to pay $125 million in civil fines. The court's ruling that XRP is not a security ended a two-year legal dispute. The decision was made by Judge Analisa Torres using recently filed court records. The $1 billion in disgorgement and $900 million in civil penalties that the SEC requested are far larger than the $125.035 million fine. Analysts predict the SEC will file an appeal of the ruling.
Important Developments in Ripple's SEC Lawsuit
Judge Torres prohibited Ripple from breaking federal securities laws in the future. She underlined that although Ripple might not have broken any rules after the litigation, they probably will in the futureThe court noted that Ripple's willingness to push the boundaries of the Order suggests a likelihood it will eventually cross the line. This ruling requires Ripple to file a registration statement if it intends to sell securities in the future. Consequently, XRP’s price rose substantially, reaching $0.5883, up nearly 16% today alone. This decision is expected to positively impact the broader crypto market which has struggled since the recent crash.
In an Aug. 7 X post, Ripple CEO Brad Garlinghouse referred to the ruling as a “victory for Ripple, the industry and the rule of law.” Ripple’s chief legal officer Stuart Alderoty affirmed the company’s respect for the $125 million fine. Garlinghouse added that Ripple respects the court's decision and now has clarity to continue growing the company, stating that the SEC's headwinds against the XRP community are gone.
Influence on the Crypto Industry
In December 2020, the SEC filed the initial case, claiming that Ripple raised money by using XRP as an unregistered security. In July 2023, Judge Torres issued an order ruling that the XRP coin was not a security with respect to exchange programmatic sales.
https://twitter.com/WatcherGuru/status/1821283255972397368?t=1ZEFzCxpKr3Rx8IbqMjT-g&s=19
The decision in favor of Ripple might lessen regulatory ambiguity in the cryptocurrency industry and provide more precise standards for other blockchain initiatives. This result is seen by many as a significant turning point for the sector. It might have an impact on upcoming cryptocurrency regulatory strategies.
The SEC also targeted Garlinghouse and Ripple executive chair Chris Larsen in the same lawsuit but moved to dismiss all claims in 2023. Following the public release of the ruling, the price of XRP rose from $0.50 to $0.62, roughly a 24% increase.
Potential Ramifications and Future Outlook
The conclusion of this case marks a major moment for Ripple and the broader cryptocurrency industry. As the SEC’s strong position towards Ripple has ended, the ruling provides a level of information that could benefit other digital asset projects facing regulatory inspection. The question remains: how will this ruling affect future regulatory actions against other cryptocurrencies?
The final stages of the SEC’s lawsuit against Ripple suggest a new phase in the regulation of digital assets. The industry now looks to see if the SEC will indeed appeal. This could extend the legal battle further but also provide additional legal clarity.
The post $125 Million Must Be Paid by Ripple to Settle the SEC Lawsuit. appeared first on Crypto News Land.
