Stuart Alderoty states Ripple’s $125M fine follows a court ruling that rejected the SEC's claim that XRP is a security.
Stuart Alderoty says, Ripple respects the court's ruling on historical sales and will pay the $125M fine, using cash from its balance sheet.
Judge Torres' ruling clarified that XRP itself is not a security, a major win for Ripple and the broader cryptocurrency industry.
Ripple's long-standing legal battle with the U.S. Securities and Exchange Commission (SEC) came to an end on Thursday 8th Aug 2024. According to Ripple’s lawyer Sturt Alderoty, Ripple is ready to pay a $125 million fine within 30 days.
https://twitter.com/AbsGMCrypto/status/1821707997988446289
This comes after Judge Torres ruled that Ripple's institutional sales of XRP violated federal securities laws, a decision that imposed a civil penalty but rejected the SEC's initial demand for a big sum of $2 billion fine. The court’s decision also highlighted the SEC's inability to prove that XRP is a security, a pivotal point in the case.
Ripple's Rebuttal Prevails
When Ripple was first sued by the SEC nearly four years ago, the company pledged to fight the case not only for itself but on behalf of the entire crypto industry. This commitment was highlighted by Ripple's lead lawyer, Stuart Alderoty, who expressed satisfaction with the court's recent decision.
The SEC had aimed to establish that XRP, the native cryptocurrency of Ripple, could be considered a security. However, the court soundly rejected this notion, providing clarity on a key issue that has long plagued the crypto market.
Alderoty emphasized that the ruling confirms XRP is not a security in and of itself, much like a bar of gold is not inherently a security. This legal clarity is expected to have a positive impact on Ripple and the broader digital currency market.
Historical Sales Under Scrutiny
Despite the victory on the broader issue of XRP's status, the court found that certain historical sales of XRP, dating back to 2015, should have been registered under securities laws. These sales, which involved sophisticated third parties, were deemed to be in technical violation of federal securities regulations.
Ripple respects this aspect of the ruling and acknowledges the fine, which the company will pay using cash reserves. Alderoty highlighted that the judge rejected the SEC's $2 billion demand because Ripple did not act recklessly or with any intent to defraud. Furthermore, no financial losses were suffered by the counterparties involved in these transactions.
Finality and Future Focus
With the fine set to be paid within 30 days, Ripple is ready to move forward. Alderoty noted that the SEC has 60 days to decide whether to appeal the ruling, but he expressed optimism that the legal battle is finally over.
Ripple's focus now shifts to growing its business both globally and domestically, capitalizing on the legal clarity provided by the court's decision. Alderoty also called for the SEC and the current administration to reconsider their approach to crypto regulation, hoping that this case will lead to more clear and consistent laws that allow the industry to thrive in the United States.
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