The post XRP To Hit $3.4: As Ripple Case Is Over, But Fair Notice Still In Play Says Ripple CLO appeared first on Coinpedia Fintech News
The four-year legal battle between Ripple and the SEC has finally ended with a major victory for Ripple. The SEC originally demanded a massive $2 billion fine, but Ripple only has to pay $125 million, a 94% reduction! This is a huge win for Ripple, and it could mean big things for XRP.
Ripple’s Chief Legal Officer, Stuart Alderoty, confirmed the case is over for them, but the “fair notice” defense still applies to other companies.
So, what does this mean for XRP? With Ripple’s token now considered not a security, will investors flood back in? Could XRP’s price surge to its all-time high of $3.40?
Ripple Case Is Over
On August 7, Ripple scored a major victory as a judge slashed the SEC’s original fine by 94%, reducing it from $2 billion to just $125 million. This ruling is seen as a big win for Ripple, the crypto industry, and the legal system.
But the battle might not be over yet. The SEC has until October 6 to appeal, which could drag the case on until 2025. There’s also talk that Ripple may have already paid the fine, signaling the official end of their legal fight.
In a recent tweet, Ripple’s Chief Legal Officer, Stuart Alderoty, pointed out that while Ripple’s legal battle with the SEC is over, the “fair notice” defense is still relevant for other companies.
Ripple's case is over, but the 'fair notice' defense is still alive for others. The SEC cites the 2017 DAO report as industry notice that 'crypto asset securities' are subject to US securities laws. Seven years later, the SEC apologizes to a federal judge—surely a person of at… pic.twitter.com/fTjQMKEwCw
— Stuart Alderoty (@s_alderoty) September 13, 2024
While Ripple’s case is settled, Alderoty’s tweet suggests that the broader crypto industry could still use this defense in ongoing or future legal disputes with the SEC.
The Importance of ‘Fair Notice’
The “fair notice” defense has been a crucial part of Ripple’s legal battle, where the company argued that the SEC failed to provide clear guidance on whether XRP should be classified as a security.
Ripple’s Chief Legal Officer, Stuart Alderoty, recently highlighted that the SEC continues to reference the 2017 DAO report as proof that the crypto industry was notified about “crypto asset securities” falling under U.S. securities laws.
However, seven years later, this has not only confused the industry but also created uncertainty in the courts.
Further Alderoty pointed out that the SEC recently had to apologize to a federal judge for the confusion caused by using the vague term “crypto asset securities.” This apology highlights the difficulty regulators face in consistently interpreting and enforcing these rules, making it tougher for businesses to comply with the shifting regulatory landscape.
XRP Path To $3.4
With Ripple’s case against the SEC now settled, analysts believe that XRP could make its way back to its previous all-time high of $3.40. Currently, XRP is trading at around $0.58, showing a 3.2% increase, with a market cap of $32.8 billion.
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