In a landmark ruling, Judge Analisa Torres has ordered Ripple to pay $125 million in civil penalties, officially concluding the Securities and Exchange Commission’s (SEC) lawsuit against the company. The verdict decisively states that XRP, Ripple’s native cryptocurrency, is not classified as a security.
This ruling marks the end of a protracted legal battle between Ripple and the SEC, which has lasted for several years. The decision represents a significant victory for Ripple and could have far-reaching implications for the broader cryptocurrency industry.
Following the announcement, the XRP price pumped, jumping over 20% in a matter of minutes. As of the latest update, XRP is trading above the $0.6 level.
BREAKING: Judge orders Ripple to pay $125 million in civil penalties, officially ending the SEC's lawsuit & concluding $XRP is not a security.
— Watcher.Guru (@WatcherGuru) August 7, 2024
This positive price action could potentially have long-term benefits for XRP. Some market analysts suggest that this legal clarity might pave the way for XRP to break the $1 barrier in the near future, though investors should always approach such predictions with caution.
The legal battle between Ripple and the SEC began in December 2020 when the regulatory agency filed a lawsuit against Ripple Labs and two of its executives. The SEC alleged that Ripple had conducted an unregistered securities offering by selling XRP tokens. Ripple vehemently denied these claims, arguing that XRP is a currency, not a security, and therefore not subject to SEC regulation.
This case quickly became one of the most closely watched legal battles in the cryptocurrency industry, with many viewing it as a potential precedent-setter for how digital assets would be classified and regulated in the United States.
The ruling in favor of Ripple could set a precedent for how other cryptocurrencies are viewed in the eyes of regulators. It may provide clearer guidelines for other blockchain projects and potentially reduce regulatory uncertainty in the crypto space.
Read also: Analyst States Conditions for Notcoin (NOT) ‘Strong Bullish’ Price Rally: Highlights Key Levels to Watch
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