Ripple vs SEC Settlement: Case Nears Conclusion, Ripple Faces $125M Penalty Read CoinChapter.com on Google News
NAIROBI (CoinChapter.com)—The Ripple vs. SEC case is nearing its conclusion after a four-year legal battle, with federal judge Analisa Torres imposing a $125 million fine on the crypto firm.
In an Aug. 7 filing in the U.S. District Court for the Southern District of New York, Judge Torres found Ripple liable for $125 million, less than the SEC’s $2 billion demand. Ripple must pay the fine within 30 days.
According to court filings, the final ruling stated:
“The SEC’s motion for remedies and the entry of final judgment is GRANTED IN PART and DENIED IN PART. The Court shall enter a final judgment enjoining Ripple from further violations of the securities laws and imposing a civil penalty of $125,035,150.”
Garlinghouse’s tweet on Ripple vs. SEC. Source: Brad Garlinghouse
Ripple’s CEO, Brad Garlinghouse, previously disclosed that the SEC sought a $2 billion penalty, calling it unprecedented. Jeremy Hogan, partner at Hogan & Hogan, considered the outcome a substantial win for Ripple.
He noted that the court did not mandate Ripple to halt on-demand liquidity sales, contrary to the SEC’s request.
XRP Soars 26% Following Ripple vs. SEC Court Decision
Following the court’s decision, the price of XRP surged 26% to reach $0.63, according to CoinMarketCap data. This price movement recouped losses incurred during the broader crypto market downturn since Aug. 5. At the time of publication, XRP is trading at $0.61, reflecting a 44.88% increase over the past 30 days.
The chart indicates a long-term descending triangle pattern with XRP’s price poised at a critical juncture. The current resistance level is around $0.65, and breaking this level could signal a bullish move.
The RSI indicator is at 57.90, suggesting that XRP is in a relatively neutral zone, with the potential for upward momentum if buying pressure increases.
XRP/USD 1-week price chart. Source: TradingView
The 50-day and 200-day EMA (Exponential Moving Average) lines are converging, which typically indicates a possible breakout. A move above the resistance level could see XRP testing higher levels, possibly around $1.00, which aligns with previous highs observed in early 2021.
The price surge caught future traders off guard, liquidating over $5.4 million in short positions within four hours, as per CoinGlass data. Should XRP hit $0.65, another $20 million in short positions could be liquidated. Conversely, a retrace to $0.55 would wipe nearly $25 million in long positions.
Experts Opine: A Win for Ripple and the Industry
James Seyffart, Senior Bloomberg ETF analyst, noted that the ruling, while imposing a substantial penalty, ultimately benefits Ripple more than the SEC. He described the SEC’s “regulation via enforcement” approach as a loss in this case.
James Seyffart post on SEC Ripple lawsuit conclusion. Source: James Seyffart
Crypto trader and Podcaster Luke Martin added that the ruling demonstrated another defeat for the SEC under Chair Gary Gensler’s leadership, reinforcing the perception that the agency’s aggressive stance on crypto regulation is faltering.
Fred Rispoli believes the decision is a win for Ripple. Source: Fred Rispoli
Fred Rispoli, a crypto lawyer, highlighted key takeaways from the ruling. He stated, “Current sales of XRP post-complaint do not necessarily violate federal law.” He noted the SEC lost when the Court refused to grant a “categorical” injunction on all Institutional Sales.
Rispoli also pointed out that Ripple did not recklessly disregard regulatory requirements. There was no disgorgement, marking a huge loss for the SEC.
Chris Larsen stated the SEC’s campaign was unhinged. Source: Chris Larsen
Ripple Labs co-founder Chris Larsen expressed hope that the conclusion of this case signals an end to what he described as the Administration’s “war on crypto.”
The ruling has led to increased optimism within the XRP community, with some investors anticipating further price gains as legal uncertainties diminish.
The post Ripple vs SEC Settlement: Case Nears Conclusion, Ripple Faces $125M Penalty appeared first on CoinChapter.
