XRP surged 18% and is currently trading at $0.606, up almost 44% in one month.
Judge Torres slashed the SEC’s $2 billion demand by 94%.
Ripple CEO said that this is a landmark victory for the digital asset space.
XRP, the seventh-largest cryptocurrency by market capitalization, surged a whopping 18% in the past 24 hours following Judge Analisa Torres rulings on the remedies sought by the United States Securities and Exchange Commission (SEC) from American fintech firm Ripple and the digital asset sector expects that both the parties might appeal the ruling.
MetaLawMan, a prominent lawyer in the crypto space, said in a post on social media platform X (previously known as Twitter) that the judge declined the SEC’s request of $2 billion from the fintech firm. The final ruling requires Ripple to pay a $125 million civil penalty for securities violations related to institutional sales, but no disgorgement. The ruling also includes an injunction, prohibiting Ripple from further violations of Section 5 of the Securities Act.
Judge Torres has issued her ruling on remedies in @Ripple.1. $0 disgorgement as expect because no losses shown by the SEC.2. $125 million in civil penalty for securities violations in sales to institutions.3. Injunction restraining @Ripple from further violations of…
— MetaLawMan (@MetaLawMan) August 7, 2024
Ripple CEO Brad Garlinghouse celebrated the decision, noting the substantial reduction, by a whopping 94%, in the SEC’s demands and emphasizing the positive implications for Ripple, the industry, and the rule of law. He stated that the “SEC’s headwinds against the whole of the XRP community are gone.”
Additionally, the crypto sector speculated that the injunction would affect Ripple’s On Demand Liquidity (ODL) services in the U.S. If that is the case, lawyer Bill Morgan believes that the company will “need to appeal on ODL sales being found to be investment contracts.”
Interestingly, the landmark judgment reducing the SEC’s demand led to a surge in the price of XRP. The leading digital asset is currently trading at $0.606, with a whopping 18% surge in the market capitalization in the past 24 hours. Moreover, the trading volume of altcoin surged 216.56% and currently stands at $5.1 billion. The altcoin is up almost 44% in one month and continues to outperform leading cryptocurrencies like Bitcoin (BTC) and Ether (ETH).
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